Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

Homebuyers are putting down less money than a year ago, with the typical down payment dropping to $27,100 in Q2 2026, the lowest since 2021. Increased inventory and lower median list prices have given buyers more negotiating power. However, higher mortgage rates have raised monthly payments significantly, outweighing down payment changes. Regional differences exist, with buyers in competitive markets putting down more, while those in softer markets put down less.