A strengthening U.S. economy, rising home values and the ongoing stretch of job creation sparked both growing demand and ability to purchase a home over the past year.
While supply and affordability constraints are indeed making home buying a challenging endeavor for many households, data from the National Association of Realtors®’ 2017 Profile of Home Buyers and Sellers reveals some hopeful news: an overwhelming majority of successful buyers obtained a mortgage and made a down payment of less than 20%.
Here is a look at how recent buyers purchased their home:
• Median purchase price – $235,000
• Obtained a mortgage – 88%
• Down payment amount – 10%
• Down payment sources – savings (59%); sales proceeds from previous home (38%)
• Received down payment help from family/friends – 16%
• Obtaining a mortgage was not difficult/easier than expected – 66%
