Down Payments on Rise with Tight Inventory

Average down payments for Conventional 30 year fixed rate mortgages have risen in the 3rd quarter of this year. The average down payment amount is pushing 18 % up fro 17 % in the prior quarter and form 16.79 % from year to year.  The average down payment in real dollars is 48925, an increase of 4000 dollars from the prior quarter. The average down payment for all mortgages is now close to 50000. This down payment increase is the result of a very competitive market and the buyer wants to eliminate any chance of a turndown by a lender. The increase in down payment also makes the monthly obligation lower and the chance to build equity increases rapidly.  The saving of a down payment is not easy but it makes the skin in the investment a better deal. For any question regarding down payments or housing needs please contact us.