Realtor.com®: Down Payments Hit Lowest Q2 Level Since 2021

EmitenTrust.com Homebuyers put more down this spring compared to winter, but higher rates pushed monthly payments up 74% over five years

AUSTIN, Texas, Sept. 24, 2026 /PRNewswire/ -- Homebuyers put more down this spring than in the winter, but the typical down payment still fell to $27,100, the lowest second quarter level since 2021, according to the Realtor.com^® second-quarter Down Payment Report. Down payments fell 9.2% year over year in dollar terms and 0.6 percentage points as a share of purchase price. Increased inventory gave buyers more room to negotiate, while higher mortgage rates kept rate-sensitive households on the sidelines.

"Down payments rose sharply from the winter into spring, as they typically do seasonally, yet the rebound still left them below year-ago levels. Buyers have gained some negotiating room, while higher mortgage rates remain the biggest factor shaping monthly affordability," said Hannah Jones, Senior Economist at Realtor.com^®. "In expensive markets, buyers with more equity are using larger down payments to reduce monthly costs; in softer markets, smaller down payments are adding to the cost of higher rates. For many households, the monthly payment, rather than just the cash needed upfront, will determine how much home they can afford."

Down Payments Rise Seasonally, Remain Below Previous Years

The typical down payment rose to $27,100, or 13.7%, in the second quarter, from $25,000, or 12.9%, in the first quarter of 2026. Although the second quarter is typically the seasonal peak, this year's increase was particularly strong. Still, the median down payment remained below the $29,900 and 14.3% recorded a year earlier.

Primary Residence Down Payments

The rebound continued into the third quarter, with the typical down payment reaching an annual high of $28,800, or 14.0%, in July. That was still 7.5% below year-ago levels in dollar terms and 0.5 percentage points lower as a share of the purchase price.

The easing in down payments is consistent with broader housing market conditions. According to Realtor.com® August housing data, active listings rose 3.6% year over year, while median list prices fell 1.3%, easing for the 10th consecutive month. Those conditions are giving buyers more time and negotiating room, reducing the pressure to lead with an outsized down payment.

Higher Rates Are Driving the Monthly Payment Burden

Down payments tell only part of the affordability story: the mortgage rate applied to the remaining loan has a larger effect on monthly costs. Even though the typical down payment share was 1.4 percentage points higher than in August 2021, the estimated monthly principal-and-interest payment rose 74% over five years, to $2,376.

The comparison below shows how higher mortgage rates drove that increase.

*Estimated monthly payments use each August's median listing price, typical down payment share and prevailing 30-year fixed mortgage rate.

The larger down payment provided only about $39 in monthly relief compared with 2021 down-payment habits. The estimated payment was $80, or 3.5%, higher than in 2025, and would rise another $58, to $2,434, if rates reached 7%.

Shifting Down Payments Either Cushion or Amplify Rising Mortgage Rates

The national increase in down payment share since 2021 masks a sharp local divide. In high-cost, competitive metros, larger down payments are helping cushion the monthly payment burden.

In softer markets, the pattern reverses. Down payments have fallen as prices cooled and competition eased, adding to the monthly cost of higher rates.

The contrast is sharp. Higher down payments reduce monthly costs by $205 to $269 in competitive metros, while lower down payments add $37 to $82 per month in softer markets. Austin offers the clearest example. Its typical listing price is down 18% over five years, yet the estimated monthly payment is still up 33% because higher rates have more than offset the price relief and smaller down payments have added to monthly costs.

Northeast Leads on Down Payments as All Regions See Year-Over-Year Declines

The Northeast remained the highest-down-payment region in the second quarter of 2026, with buyers putting down an average 18.1% of the purchase price, followed by the West at 15.2%, the Midwest at 14.2% and the South at 11.9%. All four regions saw year-over-year declines in down payment share.

The Northeast also posted the highest median down payment, reflecting higher home prices and persistent competition. Compared with the second quarter of 2019, the region's median down payment was up 238.7%, significantly more than the next-largest increase, 141.0% in the Midwest.

The South and West have seen more substantial inventory recovery and softer prices, giving buyers more negotiating room. The regional split is consistent with the Realtor.com Market Clock, which found that 70% of the nation's largest markets either favored buyers or were moving in a buyer-friendly direction in the second quarter of 2026.

"Mortgage rates will remain the biggest swing factor for buyers. If rates continue to rise, down payments and estimated monthly payments are likely to remain elevated as more marginal buyers stay on the sidelines. A sustained decline would do more to improve affordability and bring buyers back into the market, helping keep homeownership within reach for more households," Jones said.

Methodology

Down payment trends were analyzed at the national level using Optimal Blue data through August 2026. Down payment as a share of purchase price is calculated as an average across the data. Down payment as a dollar amount is calculated by taking the median across the data. Estimated monthly payments assume a 30-year fixed-rate loan on the average purchase price less the median down payment, amortized at Freddie Mac's Primary Mortgage Market Survey average 30-year fixed rate for the period shown. Comparisons are for Q2, unless otherwise stated; payment comparisons use August data. Estimated payments represent principal and interest only and exclude taxes, insurance, mortgage insurance, HOA fees and other costs of homeownership.

About Realtor.com^®

For over 30 years, Realtor.com^® has connected buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 real estate site REALTOR® agents recommend, Realtor.com® delivers consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media Contact: Janice McDill, press@realtor.com

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SOURCE Realtor.com