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Realtor.com's Report: Down Payments Steady as Housing Market Adjusts

In the third quarter of 2025, down payments in the housing market displayed notable stability despite the ongoing challenges created by high property prices and fluctuating mortgage rates. According to the latest Realtor.com® Down Payment Report, the typical amount for down payments was $30,400, a slight increase of $500 from the previous quarter and remaining stable compared to last year. The average down payment represents about 14.4% of the purchase price, indicating a balanced yet cautious market that is adapting to the estranged current economic environment.

Historically, down payments tend to ascend during the first half of the year. However, the increase noted in 2025 was quite modest in comparison to previous years. Over the course of the first three quarters, the typical down payment rose only 0.5 percentage points or $1,500, a stark contrast to the 0.8 points and $4,000 recorded over the same period in 2024. This trend reflects a housing market that is becoming more stable, with fewer spikes in prices and a more tempered demand from buyers.

Danielle Hale, Chief Economist at Realtor.com, emphasized, "Down payments remain elevated but steady, reflecting the broader housing environment. High prices and borrowing costs continue to test affordability, which keeps many potential buyers on the sidelines and slows overall sales activity. Even though mortgage rates have recently dipped into the low 6% range, the combination of high prices and limited inventory has left minimal relief for those seeking homes, particularly lower-income shoppers. As a result, the focus has shifted towards upper-tier sales, predominantly driven by higher-income buyers."

Trends in Down Payments Post-Pandemic

Buyers are putting forth significantly higher down payments compared to pre-pandemic levels. The median down payment of $30,400 is 117.9% higher than in Q3 2019, when the typical down payment was only $13,900. This increase is attributed to a steep rise in home prices, which have surged nearly 45% since 2019. The periods between 2020 and 2022 saw an aggressive spike in down payments, spurred by competition and record-setting low mortgage rates. However, the market has since cooled, stabilizing down payments at about 14-15% of the home's purchase price.

Presently, buyers are making larger down payments across the board. Investment properties and second homes are seeing down payments averaging 26.7% and 26.9% of their purchase price respectively. In dollar terms, these down payments hit $84,200 and $110,100. The data reflects that first-time homebuyers may find themselves increasingly challenged in this competitive landscape as they deal with higher entry costs.

FICO Scores and Buyer Demographics

The third quarter of 2025 revealed that the typical FICO score for a homebuyer was 735, marking its highest level in over a decade, remaining approximately 20 points above the national average. This trend indicates a market increasingly skewed in favor of financially strong buyers, who are better capable of managing elevated prices and meeting stringent lending requirements. Throughout the first seven months of 2025, sales in the luxury home market (homes priced over $750,000) rose nearly 6% year-on-year, while sales in lower-price brackets dropped by 3%, indicating a further shift towards the upper echelon of the housing market.

Regional Insights and Market Imbalance

The report highlighted the regional differences in down payment behavior, with the Northeast exhibiting the highest average percentage (18.2%) of down payments, followed by the West (16.3%), the Midwest (14.5%), and the South (12.5%). Each of the four regions recorded slight declines in down payment percentages compared to a year prior, with the South and West seeing the steepest decreases. These variations offer insights into the broader housing trends—greater inventory and diminished demand in the South and West contrasted by tighter supply and lingering competition in the Northeast and Midwest.

The Northeast region saw a median down payment of $62,900, reflecting a 5.6% increase compared to last year. Conversely, the West and South recorded declines in their median down payments, underscoring the market volatility influenced by distinct regional conditions.

Future Perspectives

As mortgage rates trend downward, experts predict a potential diversification in the buyer demographic, which may pave the way for lower down payments. However, without a notable increase in housing inventory, renewed competition may create upward pressure on prices and down payments. Consumer confidence remains a crucial element in this evolving landscape, as families continue to navigate housing affordability amid substantial economic challenges. The ongoing trending patterns serve as a reminder of the critical junction between preparation, financial capability, and market timing for potential homebuyers.

Conclusion

The real estate landscape remains intricate yet revealing. Realtor.com's insights shed light on the current dynamics of down payments and provide a roadmap of expectations for the future housing market. Each statistic tells a story of resilience and adaptability, highlighting how the experience of homebuyers today contrasts sharply with that of the past.