In a recent report from Realtor.com, down payments have shown a slight decline in the third quarter of 2024, yet they remain near the historic highs seen earlier this year. This shift comes after a peak in the second quarter, a trend influenced by a mix of seasonal forces and economic factors, including fluctuating mortgage rates and market dynamics.

Down Payments Ease but Remain High


The average down payment fell to 14.5% in Q3 2024 from the historical peak of 14.9% in Q2. This represents a modest decrease but still ranks as the third-highest percentage in recent history. The median down payment amount also dropped slightly to $30,300 from $32,700, reflecting the easing competition in the housing market.

Regional Disparities in Down Payment Trends


Regional differences are evident, with the Northeast states experiencing the most significant increases in down payments, while Southern states are witnessing declines. High-priced metros continue to demand larger down payments, but more affordable regions are seeing the most growth. This disparity highlights the ongoing impact of economic dynamics and buyer behavior across the nation.

The Role of Pandemic-Era Savings


The influence of pandemic-era savings is still felt in the market. During the pandemic, personal savings rates surged, allowing many buyers to afford larger down payments. Although savings rates have since fallen, the accumulated savings continue to support consumer spending and home buying.

Impact of Falling Mortgage Rates


The recent drop in mortgage rates, which began in May and stayed below 7% from June, is expected to further impact down payment trends. As rates continue to fall, potential buyers might hold off in anticipation of even lower rates, or conversely, increased buyer competition could drive down payments upward again.

Excess savings chart

Primary Residences vs. Investment Properties


Primary residences typically see lower down payments compared to second homes and investment properties, which have down payments nearly double the typical share of primary residences. In dollar terms, down payments for investment and second homes were significantly larger than those for primary residences in Q3 2024.

Future Outlook


As we look ahead, the question remains whether this easing trend will continue or if down payments will climb again due to market conditions. The interplay of mortgage rates, personal savings, and housing market dynamics will continue to shape these trends.

For further insights, explore the Home Purchase Sentiment Index and the Employment Report for October 2024.

More Articles

Getting licensed or staying ahead in your career can be a journey—but it doesn’t have to be overwhelming. Grab your favorite coffee or tea, take a moment to relax, and browse through our articles. Whether you’re just starting out or renewing your expertise, we’ve got tips, insights, and advice to keep you moving forward. Here’s to your success—one sip and one step at a time!

The Mark Tampa Breaks Ground on 800‑Bed Luxury Student Housing Near USF

Landmark Properties has officially begun construction on The Mark Tampa, a six‑story luxury student community featuring over 800 beds, rooftop amenities, study spaces, retail, and modern unit layouts. Set to open before the 2027–2028 school year, the project signals strong investor confidence in North Tampa’s booming student housing market.

Florida’s Insurance Costs Erupt Into a 2026 Election Flashpoint

Florida’s property and auto insurance crisis is intensifying, setting the stage for a major political showdown ahead of the 2026 elections. Republicans argue recent reforms are finally stabilizing the market, while Democrats insist families are being crushed by soaring premiums and can’t wait for relief. With homeowners, condo associations, and insurers all feeling the pressure, lawmakers are preparing for one of the most consequential legislative battles in years.

A December Fed Cut Could Be Coming — But Don’t Expect Mortgage Rates to Drop

Markets are betting heavily on a Federal Reserve rate cut in December, but that doesn’t guarantee lower mortgage rates. Even with an 85% chance of a cut priced in, mortgage rates move more with the 10‑year Treasury than the Fed itself — and recent history shows rates can rise even when the Fed eases. Today’s 6.43% average rate is the lowest in over a year, but still unpredictable, making financial readiness more important than trying to time the market.

Grand Junction’s Commercial Real Estate Market Surges 36% as New Chains Fuel Regional Growth

Grand Junction is experiencing a powerful commercial real estate upswing, with 151 commercial units closed so far in 2025—a 36% jump from last year. Building permits are also up 23%, signaling expanding development momentum. Brokers say interest from national chains is accelerating the city’s evolution, bringing jobs, investment, and long‑term economic potential to Colorado’s Western Slope.

Nashville Ranks #6 in Emerging Trends in Real Estate 2026 Report

Nashville continues its rise as one of the nation’s most attractive real estate markets, landing the #6 spot in the Emerging Trends in Real Estate 2026 report from PwC and ULI. With strong demographic momentum, business expansion, and a development pipeline drawing national eyes, the city stands out amid shifting economic conditions. The report highlights fast‑growing sectors such as data centers, senior housing, and evolving office dynamics—offering real estate professionals valuable insight into where opportunities are emerging next.

CRE This Week: The Key Trends Reshaping Canada’s Commercial Real Estate Market in 2025

Canada’s commercial real estate sector continues to evolve rapidly, with new data revealing major transactions, shifting investment patterns, and emerging economic signals across the country. From resilient retail spending to cooling construction and regional standouts like Montreal and the Prairies, this week’s CRE pulse—powered by Altus Group’s research team—gives real estate, mortgage, and finance professionals a sharp snapshot of the market forces to watch as 2025 winds down.