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Though rising mortgage rates may act as a weight on today's increased housing affordability, a report from LendingTree shows
down payments continue to shrink even as interest rates recover. According to LendingTree's study, average down payments for 30-year fixedrate purchase mortgages have declined 9.4 percent since May 2011. As of May 31, 2013, the average down payment percentage across the
nation was 16.1 percent, on an average national loan amount of $221,694.76. Doug Lebda, founder and CEO of LendingTree, says lenders are
beginning to loosen their guidelines to more normalized standards and approve loans with lower down payments now that the housing market
is showing steady improvement. After years of tight credit, borrowers are likely to find it easier to qualify for a mortgage, and Lebda says it will
only get easier as home prices rise and there are fewer underwater homeowners. In terms of lowest down payment percentages, LendingTree's
report has Mississippi at the top of the list with an average 11.9 percent down payment. West Virginia (12 percent), Alabama (12.4 percent),
Kansas (12.7 percent), and Missouri (13.2 percent) complete the lender's list of the five lowest down payments in the country. At the other end
of the spectrum, Hawaii (18.2 percent), Massachusetts (18.3 percent), New York (19 percent), California (19.1 percent), and New Jersey (20.5
percent) have the highest average down payment percentages.
Note: The state-by-state trends are based on a compilation
of April 2013 real estate public records data and proprietary
mortgage loan performance transactions provided by LPS
Applied Analytics as well as a preliminary unemployment rate
for April 2013 based upon public information from the Bureau
of Labor Statistics.
LPS Applied Analytics is a trusted resource for mortgage lenders, servicers, and investors—providing
market-leading data and analytics solutions to help them succeed. These offerings allow professionals to
improve performance, proactively identify risk, create mitigation strategies, and accurately estimate collateral
value. An integral part of parent company Lender Processing Services' (LPS) end-to-end solution suite, LPS
Applied Analytics products include: property, MLS, and mortgage performance data; mortgage and real estate
analytics; lead generation; portfolio monitoring and analytics; valuations; and property tax reporting.
To learn more about LPS visit LPSvcs.com.
