Average Down Payment Slips Nationwide As Buyer Leverage Grows

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.”

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.