Down Payments Hit Lowest Q2 Level Since 2021
Homebuyers in the second quarter of 2026 made a typical down payment of $27,100—$29,900 below the previous year's level and marking the lowest quarterly amount since 2021. While there was an increase from Q1 to Q2 due to seasonal trends, it remained lower than historical averages. The report attributes this decline in down payments partly to higher mortgage rates that have kept many rate-sensitive buyers out of the market. Despite larger average down payments compared to winter months, increased inventory and falling median list prices gave homebuyers more room for negotiation. However, rising interest rates significantly impacted monthly affordability. For example, estimated 30-year fixed-rate mortgages rose from around 2.88% in August 2021 to nearly 7% by late September 2026. The report highlights a regional divide: larger down payments are helping cushion the impact of higher rates in expensive markets, while smaller ones amplify costs due to high interest burdens.
Topics: Affordability Down payments Housing market Mortgage rates