Why Down Payments Have Hit a Two-Year Low

The typical down payment for US homebuyers fell 10% YoY to $42,375, the lowest level in two years, due to low competition in the housing market. Buyers are able to purchase homes without facing bidding wars and don't need to fork over a huge portion of their savings for a down payment. High housing costs, persisting inflation, and concerns over the uncertain economy are also hitting budgets hard. Lower home prices have fallen more than 10% from their peak in May 2022 and are down 1.5% from a year ago.