The quarterly increase in the median down payment jumped +5.8% in Q3 2021 plus a whopping y/y increase of +41%.
National Median Down Payment Hits Highest Levels in +20 Years
ATTOM Data Solution’s Q3 2021 US Residential Property Mortgage Origination Report indicated that the median down payment on single-family homes purchased with financing stood at $27,500 in Q3 2021. This $27,500 represents an increase of +5.8% from $26,000 in Q2 2021 and a whopping y/y increase of +41% from $19,502 in Q3 2020.
This median down payment of $27,500 represented 8% of the nationwide median sales price for homes purchased with financing in Q3 2021, an increase from 7.8% in Q2 2021 and a year-over-year increase of 6.5% in Q3 2020.
The median loan amount among home purchased in Q3 2021 was $295,954, a quarterly increase of +2.8% from Q2 2021 and an annual increase of +13% from Q3 2020.
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Top 10 Metros with Highest Down Payments in Q3 2021
Included among the top ten metros with the highest down payments during Q3 2021 were…
- San Jose-Sunnyvale-Santa Clara CA – $336,700
- San Francisco-Oakland-Hayward CA – $253,000
- Los Angeles-Long Beach-Anaheim CA – $166,500
- Boulder CO – $151,325
- Oxnard-Thousand Oaks-Ventura CA – $145,540
- San Diego-Carlsbad CA -$134,000
- Bridgeport-Stamford-Norfolk CT – $110,600
- Santa Rosa CA – $110,500
- Seattle-Tacoma-Bellevue WA – $107,000
- Boston-Cambridge-Newton MA – $101,125
Overall Mortgage Lending Down in Q3 2021
This spike in ATTOM’s median down payment data in Q3 2021 was happening simultaneously with overall mortgage lending dropping -8% in Q3 2021. This was the second consecutive quarterly drop and the first time in more than two years that total lending fell two straight quarters. Also notably, ATTOM indicated that Q3 2021 was the first time in any year since at least 2000 that lending activity dropped in the housing market’s typically peak buying seasons of both Q2 and Q3.
ATTOM’s analysis pointed to 3.59M residential mortgage originations in Q3 and just 1.99M refinance applications, a decline of -13% q/q from Q2 2021. Purchase loans dropped -2% q/q but remained up y/y by +17%. This was the second consecutive quarterly decline in refinance applications and the largest decline in three years.
For more specifics on this mortgage lending decline in Q3, plase read our accompanying post titled “Mortgage Lending Declines in Q3 2021.”
Thanks to ATTOM Data Solutions.
