LendingTree, the company known for the phrase "and the banks come crawling to me," reported this week that average down payment percentages for conventional 30-year fixed-rate purchase mortgage offers rose slightly in the second quarter to an average of 17.13%. That was up from 16.64% in the prior quarter but off a bit from the same period last year (17.34%).
The average down payment amount also fell quarter-over-quarter, from $51,721 to an average $49,839 but increased year-over-year from $44,007.
The average down payment percentage and amount for all purchase mortgages, including FHA, VA, non-prime, and jumbo mortgages in the second quarter increased slightly quarter-over-quarter from 12.18% and $44,058 to 12.33% and $44,080.85, respectively.
"The housing marketing is experiencing growth with sales of new and existing homes climbing year-over-year," said Doug Lebda, founder and CEO of LendingTree. "Low mortgage rates, steady job growth and more options for affordable and entry-level are attracting home buyers to the market. Interestingly, we saw a 43.2% increase in loan requests from first-time home buyers year over year. With competition in many markets heating up, down payment percentages are trending upwards, making a transaction more attractive to sellers and giving buyers a head start in building equity in their new home."
The average down payment on an FHA mortgage in the first quarter was 8.12%, or $16,793.13, representing a slight increase from Q2 2015. The average down payment on a jumbo mortgage was 23.91%, or $162,500 in the second quarter.