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
Income Gap Puts Starter Homes Out Of Reach For Most First-Time Buyers

Just 37.6% of nonhomeowner households can afford a typical starter home, according to a recent study by LendingTree

Jul 01, 2026
Home Sellers Lower Prices While Buyers Return: Realtor.com

June report points to a more balanced housing market as pending sales climb for a seventh straight month despite mortgage rates holding near 6.5%

Jul 01, 2026
Luxury Home Prices Continue To Outpace Broader Housing Market

Redfin says luxury home prices climbed 4.7% annually through May, with demand accelerating as high-end buyers remain largely insulated from affordability pressures

Jul 01, 2026
Fannie Mae Guaranty Book Slips; Delinquencies Stay Low

Single-family mortgage delinquencies edged higher in May while new business acquisitions slowed

Jul 01, 2026
California Homebuyers Face Nation's Biggest Affordability Gap

New report highlights growing demand for creative financing and first-time buyer solutions

Jul 01, 2026
Saving For A Down Payment Could Take 65 Years — Depending On The Market

Rocket Mortgage found first-time buyers typically put down 5% in some markets and about 30% in others

Jun 30, 2026