New data from Redfin shows that the typical down payment fell over 10% over a one-year period ending in January, coming in at $42k. They say this is the lowest is has been in nearly two years. They also report that the median down payment was down 35% from its peak in June, but it was still up more than 30% from pre-pandemic levels.
A few key points:
- The median down payment was equal to 10% of the purchase price, down from 14% a year earlier.
- Nearly one-third of home purchases were in cash, the highest share in nine years.
- The share of borrowers using FHA and VA loans reached the highest level in over two years.