Average Down Payments Rise Slightly as Housing Market Improves

Staff Report From Georgia CEO

Thursday, July 30th, 2015

According to the latest national down payments report released today by LendingTree, the nation's leading online loan marketplace, average down payment percentages for conventional 30-year fixed rate purchase mortgage offers rose slightly in the second quarter to an average of 17.34 percent, up from 16.98 percent in Q1 2014. The average down payment amount also rose quarter-over-quarter to $44,204, a marginal increase from the $44,007 of the previous quarter. The average down payment for all purchase mortgages, including FHA, VA, non-prime, and jumbo mortgages in the second quarter was $44,366 or 15.15 percent.

"The spring and summer home buying season naturally creates more demand in the housing market," said Doug Lebda, founder and CEO of LendingTree. "With a more competitive housing market, it is common to see down payments rise. However, we also saw volume for FHA loans increase a little over five percent quarter over quarter, signaling more first time homebuyers entering the market. For potential buyers who have been sitting on the fence, it's still a good time to explore the housing market as interest rates remain historically low."

The average down payment on an FHA mortgage in the second quarter was 7.86 percent, or $13,350 while the average down payment on a jumbo mortgage was 23.61 percent, or $215,909.

An infographic released by LendingTree ranks each state according to the conventional average down payment percentages offered to LendingTree customers from lowest to highest. The ten states with the lowest average down payment percentage for a 30-year fixed rate conventional loan are: 

Rank

State

Quarterly Rank
+/-

Down Payment %

Offered - Loan
Amount (AVG)

Offered - Down
Payment (AVG)

1

SD

10

14.13%

$186,379.43

$24,735.82

2

MS

6

14.17%

$182,451.22

$22,285.77

3

IA

13

14.82%

$182,669.32

$28,395.41

4

IN

6

14.90%

$174,173.52

$22,081.84

5

ME

38

15.02%

$189,121.65

$35,380.58

6

AL

-4

15.12%

$184,228.71

$31,260.09

7

DE

32

15.21%

$211,342.92

$35,441.37

8

KY

-7

15.24%

$172,052.98

$32,240.53

9

WV

-6

15.24%

$174,607.83

$27,546.33

10

OH

-3

15.29%

$186,771.90

$32,651.59

The ten states with the highest down payment percentage for a 30-year fixed rate conventional loan are: 

Rank

State

Quarterly Rank
+/-

Down Payment %

Offered - Loan
Amount (AVG)

Offered - Down
Payment (AVG)

42

FL

-1

17.58%

$206,675.78

$40,909.07

43

AK

-9

17.74%

$237,995.99

$48,509.36

44

NH

-32

18.16%

$207,659.46

$50,583.53

45

CT

1

18.62%

$222,510.51

$53,031.52

46

MA

-1

19.15%

$255,065.25

$69,323.27

47

HI

4

19.75%

$270,268.12

$61,413.95

48

NY

2

19.97%

$243,887.80

$76,101.19

49

CA

0

20.01%

$297,461.74

$70,854.17

50

NJ

-3

20.14%

$259,870.65

$59,909.15

51

DC

-3

21.03%

$354,666.67

$111,427.08