Average Down Payment Slips Nationwide As Buyer Leverage Grows – NMP Skip to main content

Average Down Payment Slips Nationwide As Buyer Leverage Grows

Feb 17, 2026
Average Down Payment Slips

The typical U.S. down payment fell to $64,000 in December as buyers gained negotiating leverage, mortgage rates eased, and affordability pressures reshaped purchasing behavior

A new Redfin report shows the typical U.S. homebuyer’s down payment fell 1.5% year-over-year to $64,000 in December 2025, marking the first decline in five months as housing market conditions evolve.

In percentage terms, buyers put down 15.2% of the purchase price, down from 16.7% a year earlier, even though the median home‑sale price edged up modestly in December. The data reflects purchases where buyers took out a mortgage and covers 38 of the most populous U.S. metropolitan areas (MSAs).

“Down payments may be falling in part because Americans are seeking out more affordable homes due to high prices, elevated mortgage rates, and economic uncertainty,” said Redfin Principal Economist Sheharyar Bokhari. “Sellers typically prefer buyers who make large down payments because it signals financial stability, but sellers don’t have much say in today’s market. Buyers hold the negotiating power because there are more homes for sale than people who want to buy them.”

 

The typical U.S. homebuyer’s down payment fell 1.5% year over year to $64,000 in December—the first decline in five months

 

Mortgage rates have eased somewhat from recent highs, with the average 30‑year fixed rate mortgage (FRM) hovering around the 6.09% mark, near its lowest level since 2022. This softening has helped lower monthly payments and may encourage some buyers who were previously on the sidelines.

Metro‑level figures reveal significant variability, as the largest median down payments were found in expensive California markets such as San Francisco ($400,310), San Jose ($360,000), and Anaheim ($270,800). Cities like Virginia Beach, Virginia ($8,700), Cleveland ($25,025), and Cincinnati ($25,143) remained at the low end.

All‑cash home purchases ended 2025 at a five‑year low, and affordability indicators suggest that buyers need significant income to qualify for typical home prices — though the gap between renter and buyer finances has narrowed slightly.

 

the typical homebuyer put down 15.2% of the purchase price, compared with 16.7% a year earlier
About the author
Published
Feb 17, 2026
Nearly Half Of Americans Would Consider A 3D-Printed Home

Consumer interest is growing, but concerns about durability, appraisals, code compliance, and resale value could complicate financing

Sep 03, 2026
Higher Mortgage Rates End Purchase Market’s Eight-Month Run

Pending listings turned negative in August despite more inventory, lower asking prices, and sellers remaining open to negotiation

Sep 03, 2026
Falling Home Prices Aren’t Yet Fixing The Affordability Problem

Price declines are spreading, yet mortgage rates and uneven local conditions continue to limit what buyers can afford

Sep 01, 2026
Warsh Sees Housing Strain, Keeps Rate Hikes In Play

Fed chair says broader financial conditions remain loose, inflation is too high, and markets should expect less guidance on what comes next

Aug 31, 2026
Visity Aims To Turn Servicers’ ‘Pile Of PDFs’ Into Portfolio Intelligence

The technology is designed to transform field observations into searchable portfolio data for lenders, servicers, and investors

Aug 31, 2026
More Listings, Fewer Contracts Put Rate Buydowns In Play

Pending sales fell to a six-month low as inventory increased, giving originators more room to use seller concessions to make difficult purchase deals work

Aug 28, 2026