Median Down Payment for U.S. Homes Purchased in Q3 2017 Increases to a New High of $20,000

Post featured image

Average Down Payment of $76,645 Also at New High
Median Down Payment 7.6 Percent of Median Home Price, a 4-Year High;
Purchase Loans Up 7 Percent, HELOCs Up 12 Percent, Refis Down 19 Percent from Year Ago

IRVINE, Calif. – Dec. 14, 2017 — ATTOM Data Solutions, curator of the nation’s largest multi-sourced property database, today released its Q3 2017 U.S. Residential Property Loan Origination Report, which shows that the median down payment for single family homes and condos purchased with financing in the third quarter was $20,000, up from $18,161 in the previous quarter and up from $14,400 in Q3 2016 to a new high as far back as data is available, Q1 2000.

The loan origination report is derived from publicly recorded mortgages and deeds of trust collected by ATTOM Data Solutions in more than 1,700 counties accounting for more than 87 percent of the U.S. population. Counts and dollar volumes for the two most recent quarters are projected based on available data at the time of the report (see full methodology below).

The average down payment of $20,000 was 7.6 percent of the median sales price of $263,000 for financed home purchases in the third quarter, up from 7.1 percent in the previous quarter and up from 6.1 percent in Q3 2016 to the highest level since Q3 2013 — a four-year high.

“Buying a home has become a full-contact sport in many markets across the country, and buyers with the beefiest down payments — not to mention all-cash buyers — are often able to muscle out those with scrawnier savings,” said Daren Blomquist, senior vice president with ATTOM Data Solutions. “Despite the increasingly competitive nature of homebuying, the number of residential property purchase loans nationwide increased to a 10-year high in the third quarter.”

Median down payment tops $50,000 in a dozen markets

The median down payment was more than $50,000 in 12 of the 99 metropolitan statistical areas analyzed in the report, led by San Jose California ($247,000); San Francisco, California ($170,000); Los Angeles, California ($118,000); Oxnard-Thousand Oaks-Ventura, California ($105,000); and Boulder, Colorado ($99,900).

“Across Southern California factors such as low available listing inventory have resulted in many consumers turning to cash or leveraging investment accounts for cash as alternative methods for funding home ownership and beating out competitors for acceptance of their purchase offers in a highly competitive market,” said Michael Mahon president at First Team Real Estate, covering the Southern California market.

Other markets with median down payments above $50,000 were San Diego, California; New York, New York; Fort Collins, Colorado; Bridgeport, Connecticut; Boston, Massachusetts; Seattle, Washington; and Naples, Florida.

“Rising home prices in the Seattle area combined with changes in the mortgage underwriting process have pushed the median down payment over $50,000 and the average down payment to over $100,000,” said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market. “We’ve also seen an increase in new mortgages which is an indication of rising home sales. Most interesting to me is the big jump in new lines of credit which is likely a result of frustrated buyers deciding to stay in their existing homes and remodel rather than deal with the highly competitive Seattle housing market.”

Purchase and HELOC originations increase, refinance originations down

Nearly 2.4 million loans (2,386,518) secured by residential property (1 to 4 units) were originated in the third quarter, up 17 percent from the previous quarter but still down 5 percent from a year ago.

Of the total 2.4 million loan originations during the quarter, nearly 1.1 million were purchase loans (1,011,144), up 8 percent from the previous quarter and up 7 percent from a year ago to the highest level since Q3 2007 — a 10-year high.

A total of 981,773 refinance loans secured by residential property were originated in the third quarter, up 28 percent from the previous quarter but still down 19 percent from a year ago.

A total of 393,602 home equity lines of credit (HELOCs) secured by residential property were originated in the third quarter, up 19 percent from the previous quarter and up 12 percent from a year ago to the highest level since Q2 2008, a more than nine-year high.

Raleigh, New York, Roanoke, Honolulu, Little Rock post biggest purchase loan increases

Among 120 metropolitan statistical areas analyzed in the report for loan origination trends, those with the biggest increase in purchase loan originations secured by residential property were Raleigh, North Carolina (up 55 percent); New York, New York (up 39 percent); Roanoke, Virginia (up 39 percent); Honolulu, Hawaii (up 38 percent); and Little Rock, Arkansas (up 34 percent).

Counter to the national trend, 58 of the 120 metro areas analyzed in the report (48 percent) posted a year-over-year decrease in residential property purchase loan originations, including Houston (down 10 percent); Miami (down 6 percent); Atlanta (down 15 percent); Boston (down 7 percent); and Detroit (down 7 percent).

San Jose, Honolulu, Rochester, San Diego, Bridgeport post biggest refi loan decreases

Among 120 metropolitan statistical areas analyzed in the report for loan origination trends, those with the biggest year-over-year decrease in residential property refinance loan originations were San Jose, California (down 58 percent); Honolulu, Hawaii (down 56 percent); Rochester, New York (down 49 percent); San Diego, California (down 49 percent); and Bridgeport, Connecticut (down 48 percent).

Counter to the national trend, 22 of the 120 metro areas analyzed in the report (18 percent) posted year-over-year increases in residential property refinance loan originations, including New York (up 7 percent); Kansas City (up 15 percent); Oklahoma City (up 51 percent); Raleigh, North Carolina (up 2 percent); and Grand Rapids, Michigan (up 6 percent).

Reno, Fort Wayne, Peoria, Bremerton, Dallas post biggest HELOC increases

Among 120 metropolitan statistical areas analyzed in the report, those with the biggest year-over-year increase in residential property HELOC loan originations were Reno, Nevada (up 80 percent); Fort Wayne, Indiana (up 74 percent); Peoria, Illinois (up 46 percent); Bremerton, Washington (up 45 percent); and Dallas, Texas (up 43 percent).

Counter to the national trend, 43 of the 120 metro areas analyzed in the report (36 percent) posted a year-over-year decrease in HELOC loan originations, including Houston (down 17 percent); Miami (down 3 percent); Atlanta (down 6 percent); San Francisco (down 1 percent); and St. Louis (down 4 percent).

Share of co-borrowers increases in 87 percent of markets

The report also found that 23.4 percent of all purchase loan originations on single family homes in Q3 2017 involved co-borrowers — multiple, non-married borrowers listed on the mortgage or deed of trust — up from 22.8 percent in the previous quarter and up from 21.1 percent in Q3 2016.

The share of co-borrowers increased from a year ago in 33 of 38 U.S. cities analyzed in the report (87 percent), including Las Vegas, Nevada; Houston, Texas; San Antonio, Texas; Phoenix, Arizona; and Colorado Springs, Colorado.

Counter to the national trend, the share of co-borrowers decreased from a year ago in five markets: Austin, Texas; Dallas, Texas; Miami, Florida; Aurora, Colorado; and Memphis, Tennessee.

Cities with the highest share of co-borrowers in Q3 2017 were San Jose, California (51.1 percent); Miami, Florida (42.7 percent); Seattle, Washington (36.7 percent); Los Angeles, California (30.4 percent); and Portland, Oregon (30.1 percent).

Share of FHA and VA loans drops from a year ago

Loans backed by the Federal Housing Administration (FHA) accounted for 12.9 percent of all residential property loans originated in the third quarter, down from 13.6 percent in the previous quarter and down from 13.2 percent in Q3 2016.

Loans backed by the U.S. Department of Veterans Affairs (VA) accounted for 6.6 percent of all residential property loans originated in the third quarter, up from 6.5 percent in the previous quarter but down from 7.5 percent in Q3 2016.

Report methodology
ATTOM Data Solutions analyzed recorded mortgage and deed of trust data for single family homes, condos, town homes and multi-family properties of two to four units for this report. Each recorded mortgage or deed of trust was counted as a separate loan origination. Dollar volume was calculated by multiplying the total number of loan originations by the average loan amount for those loan originations. Origination counts and dollar volumes are projected for the most recent two quarters based on historical share of mortgage and deed of trust data recorded and collected within 45 days from the end of a quarter — which is when ATTOM pulls data for the report.

About ATTOM Data Solutions
ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties. The ATTOM Data Warehouse delivers actionable data to businesses, consumers, government agencies, universities, policymakers and the media in multiple ways, including bulk file licenses, APIs and customized reports.

ATTOM Data Solutions also powers consumer websites designed to promote real estate transparency: RealtyTrac.com is a property search and research portal for foreclosures and other off-market properties; Homefacts.com is a neighborhood research portal providing hyperlocal risks and amenities information; HomeDisclosure.com produces detailed property pre-diligence reports.

ATTOM Data and its associated brands are cited by thousands of media outlets each month, including frequent mentions on CBS Evening News, The Today Show, CNBC, CNN, FOX News, PBS NewsHour and in The New York Times, Wall Street Journal, Washington Post, and USA TODAY.

Media Contact:
Jennifer von Pohlmann
949.502.8300, ext. 139
jennifer.vonpohlmann@attomdata.com

Data Licensing and Custom Report Orders
800.462.5125
datasales@attomdata.com

Please contact us if you have questions about the underlying data referenced in this article, or would like to have access to that data in the form of custom reports, API or bulk files.

25 Responses to “Median Down Payment for U.S. Homes Purchased in Q3 2017 Increases to a New High of $20,000”

December 15, 2017 at 4:44 am, Bay Area Homebuyers Still Lead the Nation for Down-Payment Size | Chris Swim & Tracy Keaton said:

[…] ATTOM Data Solutions’ latest U.S. Residential Property Loan Origination Report says that the median down payment for single-family homes and condominiums was $20,000 in the third quarter, the highest since the company began tracking that data 17 years ago. That represents 7.6 percent of the national median sales price of $263,000, the largest percentage recorded since 2013. […]

Reply

December 15, 2017 at 6:06 am, Bay Area Homebuyers Still Lead the Nation for Down-Payment Size | Schoenhouse & Manter said:

[…] ATTOM Data Solutions’ latest U.S. Residential Property Loan Origination Report says that the median down payment for single-family homes and condominiums was $20,000 in the third quarter, the highest since the company began tracking that data 17 years ago. That represents 7.6 percent of the national median sales price of $263,000, the largest percentage recorded since 2013. […]

Reply

December 16, 2017 at 10:03 am, This week’s real estate headlines | Reno Real Estate Blog said:

[…] from ATTOM Data Solutions: Median Down Payment for U.S. Homes Purchased in Q3 2017 Increases to a New High of $20,000 […]

Reply

December 18, 2017 at 1:31 pm, Homebuyers plunking down more money for down payments said:

[…] The average U.S. homebuyer in the third quarter made a down payment that was higher than any other quarter since the first quarter of 2000, according to a new report. […]

Reply

December 19, 2017 at 3:28 pm, Bay Area Homebuyers Still Lead the Nation for Down-Payment Size | Kurt Piper Group said:

[…] ATTOM Data Solutions’ latest U.S. Residential Property Loan Origination Report says that the median down payment for single-family homes and condominiums was $20,000 in the third quarter, the highest since the company began tracking that data 17 years ago. That represents 7.6 percent of the national median sales price of $263,000, the largest percentage recorded since 2013. […]

Reply

December 19, 2017 at 3:38 pm, Bay Area Home Buyers Still Lead the Nation for Down-Payment Size | Payton + Binnings said:

[…] in the third quarter, with Silicon Valley homebuyers putting down 12 times the national amount. ATTOM Data Solutions’ latest U.S. Residential Property Loan Origination Report says that the median down payment for single-family homes and condominiums was $20,000 in the third […]

Reply

January 03, 2018 at 10:01 pm, Homebuyers increasing percentage of down payment · Pennsylvania Association of Realtors said:

[…] ATTOM Realty Solutions found that the median down payment for single-family homes and condos was $20,000 for the third quarter of 2017, an increase of nearly $2,000 from the second quarter, and up more than $5,000 year-to-year. It’s a new high since the company began tracking in the first quarter of 2000. In 12 of the 99 metro areas analyzed, the median down payment surpassed $50,000. […]

Reply

January 17, 2018 at 9:05 am, Down Payments Reached a New Peak in 2017 - Banker & Tradesman said:

[…] payments are expected to continue to rise as home prices appreciate in the new year. The report also found that 23.4 percent of all purchase […]

Reply

January 18, 2018 at 5:05 pm, Buying a House with a Little Help from Your Friends and Relatives: Pt. 2 said:

[…] home prices have risen, so, too, has the number of people buying a home with a co-borrower. Last week, we talked with Prosperity Home Mortgage about the process of buying a home with a […]

Reply

February 11, 2018 at 11:41 am, Wayne's Auto Sales said:

Very interesting info!Perfect just what I was looking for!

Reply

February 26, 2018 at 9:41 pm, Homebuyers dig deep for down payments | CalHomeNews said:

[…] Four of the cities with the largest median down payments in the nation were in California during the third quarter, according to ATTOM Data Solutions. […]

Reply

February 28, 2018 at 1:49 pm, Understanding down payments, earnest money, and their utility | GoCapWest.com said:

[…] attractive to sellers. Daren Blomquist, senior vice president at ATTOM Data solutions, noted that fortune favors buyers who offer the most up-front to sellers. "Buying a home has become a full-contact sport in many […]

Reply

May 04, 2018 at 4:37 am, Saving For A Down Payment Is Hard – These 8 Tools Make It Easier – TCNN: The Constitutional News Network said:

[…] roadblocks to home buying. And with home prices on the rise and the median down payment hitting an 18-year high of $20,000 last year, that’s not likely to change anytime […]

Reply

May 04, 2018 at 4:51 am, Saving For A Down Payment Is Hard - These 8 Tools Make It Easier - THE Politico Post said:

[…] roadblocks to home buying. And with home prices on the rise and the median down payment hitting an 18-year high of $20,000 last year, that’s not likely to change anytime […]

Reply

May 05, 2018 at 10:21 am, Rents are on the rise so find out what your best home buying options are said:

[…] payment in less than two years. You may have already saved enough! Here in Columbus, according to AttomData,  the average down payment is 6.7%, but we still have many borrowers qualifying for loans with […]

Reply

May 06, 2018 at 6:51 am, 8 Tools That Make Saving For A Down Payment Easier - Unlimited Earn Money said:

[…] roadblocks to home buying. And with home prices on the rise and the median down payment hitting an 18-year high of $20,000 last year, that’s not likely to change anytime […]

Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Email our Media Contact
Email our Data Sales Team
Data Question?
Data Questions?

Contact our experts with questions about any of the data and analytics referenced in our articles.