Mortgage Down Payments Decline as Housing Market Shifts

Recent trends show a decrease in down payments due to lower demand and increased housing inventory, though rates remain historically high.

The average down payment in the U.S. fell to $30,300 in Q3 2024, down from $32,700 in the previous quarter, marking a 14.5% share of purchase price.
States like Florida and Texas saw significant declines in down payments, with Florida experiencing a 24% drop and Texas a 23.2% decrease year over year.
Increased housing inventory and easing mortgage rates have provided buyers with more options, leading to reduced competition and lower down payments.
Despite the recent decline, down payments are still at historically high levels, influenced by high mortgage rates and consumer demand.
Northeast states such as Rhode Island and Connecticut saw increases in down payments, reflecting strong buyer demand in those regions.