More borrowers are putting more down

by MPA11 Feb 2015
According to a recent report released by LendingTree, down payment percentages for conventional 30-year, fixed-rate purchase mortgages increased in the fourth quarter to an average of 17.59%, up from 16.01% a year ago. Additionally, the average down payment amount also increased year-over-year to $47,585, up from $45,545.32 in the same quarter last year.

"The improving job market, rising home values and low mortgage rates have helped to bring borrowers with sizeable down payments in to the housing market during the fourth quarter," Doug Lebda, founder and CEO of LendingTree, said. "It's encouraging to see responsible borrowing behavior.  A substantial down payment will allow borrowers to build home equity, ease lender risk, avoid paying PMI and reduce monthly mortgage payments, all of which will help to further strengthen the overall economy."

LendingTree ranked each state according to the average down payment percentages offered to LendingTree customers from lowest to highest. Three of the five markets with the highest average down payment were in California:
 
Metro area Avg. Down Payment % Avg. Down Payment
San Jose, CA 23.00% $103,814.97
San Francisco, CA 22.16% $101,952.70
San Diego, CA 21.29% $90,200.16
Seattle, WA 20.39% $84,295.98
Bridgeport, CT 21.24% $82,817.65

The 10 states with the lowest average down payment percentage for a 30-year fixed rate conventional loan are:
 
Rank State Avg. Down Payment % Avg. Down Payment
1 AR 14.70% $31,292.96
2 ND 15.09% $30,869.36
3 IN 15.18% $32,306.79
4 MO 15.55% $31,807.76
5 OH 15.62% $31,140.24
6 AL 15.63% $33,891.77
7 OK 15.64% $30,991.43
8 VT 15.68% $41,888.33
9 SD 15.83% $27,825.98
10 KS 15.83% $39,658.60

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