Anecdotally And Quite Reasonably, Many Buyers Seem To Be Making Larger Down Payments These Days


Anecdotally And Quite Reasonably, Many Buyers Seem To Be Making Larger Down Payments These Days
By Scott Rogers • October 4, 2023
Yes, I know, this is just based on transactions I am observing, and perhaps even just those that lodge themselves into my mind more than others, but... Home buyers seem to be making larger down payments these days -- and I can understand why. Before... with 3% - 4% mortgage interest rates... there wasn't much of a motivation to make much of a downpayment. Your mortgage payment would be so low, given low mortgage interest rates, that buyers would often finance as high of a percentage of the purchase price that their lender would allow. Now... with 7% mortgage interest rates... buyers are motivated to make as large of a down payment as possible, to make their loan amount as small as possible, given the (relatively) higher mortgage interest rates. This is not to say that all of a sudden all buyers are putting 20% down on their real estate purchases -- they aren't -- but the calculus of how much cash to put into a real estate purchase looks a bit different these days. Home buyers are certainly still keeping some cash on the side for emergencies, etc., but they are often making larger down payments (and financing less) now than they were a few years ago. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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