Share of low down payment mortgages hits 11-year low
The percentage of down payments of 3% or less has fallen to its lowest level in a decade. Analysis of almost 20 million home loans
by RealtyTrac found that last year just 25% of buyers using conventional or FHA loans
put less than 3% down. In 2013 it was 27%, and in 2009 it peaked at 46% as a tax credit encouraged more first-timers into the market.
The data also showed that the average down payment has stayed within the 13 to 16% range during the past ten years, but hit a high of 15.6% in 2013. In that year the average purchase price was $291,428 with a downpayment of $58,900. Read the full story.
Mortgage rates break their decline streak
The average mortgage rate has increased slightly in the last week, according to an analysis by Zillow. The average rate for a 30-year fixed mortgage was 3.67%, up one basis point from a week earlier. The 15-year fixed rate was 2.88%, while 5/1 ARMs were at 2.91%.
“Rates moved decisively higher early last week, continuing the previous week’s trend,” Erin Lantz, vice president of mortgages at Zillow, said. “With little domestic economic news scheduled for release, we expect rates to move slightly higher this week as uncertainty about Greece and the Eurozone continues to drive market movements.” Read the full story.