Summer pullback in mortgage rates helped pave way for lower down payments for many homebuyers

Homebuyers opted to make smaller down payments this summer as declining mortgage rates helped boost their purchasing power, though home shoppers’ upfront costs remain near their peak. The average down payment on a U.S. home as a percentage of the purchase price was 14.5% in the June-September period, down from 14.7% a year earlier, according to data from Realtor.com. The median down payment nationally was $30,319, just 0.4% below what it was in the third quarter last year. Years of rising home prices and mortgage rates have made homeownership less affordable for many Americans. Larger down payments reduce the amount that homebuyers have to finance, which lowers the monthly mortgage payment.