Monday, October 31, 2016

The Shrinking Down Payment

Here's one way in which homebuying has changed dramatically over the years. Data published yesterday by the National Association of Realtors shows the median percent down payment among both first-timers and repeat buyers is essentially half what it was just 30 years ago.

In 1989, the median down payment among all buyers was 20 percent, according to NAR. In 2016 it’s down to 10 percent. Among first-time buyers it’s all the way down to 6 percent.

About half of first-time buyers - 49 percent - said that student loan debt made saving for a down payment difficult. Student loans weren’t the only impediment, though: 40 percent of all buyers said credit-card debt had delayed saving for a down payment or a home purchase.

No comments:

Post a Comment