WASHINGTON–The average down payments by first-time homebuyers continues to decline.
According to the National Association of Realtors’ Realtors Confidence Index, in February 65% of first-time buyers made down payments of between 0% and 6% on their homes. That figure is down from approximately 75% in 2009, when the NAR began tracking the data.
The median among first-timers in 2016 was 6%, according to the NAR; among all buyers, the median is 10%.
The National Association of Realtors noted that mortgages backed by the government, including the Federal Housing Administration, Fannie Mae and Freddie Mac, now include features such as low-down-payment lending in order to attract more first-time buyers into the market.
The increasing cost of housing is expected to continue to put a strain on down payments for many buyers.