Realtor.com®: Down Payments Steady as Average FICO Scores Remain At 10-Year High

Continued high prices and mortgage rates in the third quarter of 2025 kept many homebuyers on the sidelines, while higher-income buyers continued to drive upper-tier sales

AUSTIN, Texas, Oct. 20, 2025 /PRNewswire/ -- Down payments remained relatively flat in the third quarter, as the housing market continued to balance elevated costs with moderating demand. According to the latest Realtor.com^® Down Payment Report, the typical down payment in Q3 2025 was $30,400 – about $500 higher than Q2 and roughly unchanged from a year earlier. The average down payment share remained near 14.4% of the purchase price.

Historically, down payments pick up steam through the first half of the year, but 2025's gain was more modest. Between the first and third quarters, the typical down payment rose just 0.5 percentage points, or $1,500, compared with 0.8 points and $4,000 during the same period in 2024, reflecting a steadier market with stable prices and more measured buyer demand.

"Down payments remain elevated but steady, reflecting the broader housing environment," said Danielle Hale, chief economist at Realtor.com^®. "High prices and borrowing costs continue to test affordability, keeping many potential buyers on the sidelines and slowing overall sales activity. Even with mortgage rates easing into the low 6% range in recent months, the combination of high prices and limited inventory has left little relief for cost-sensitive home shoppers, while increasingly concentrating homebuying among higher-income households."

Down Payments Remain Elevated Post-Pandemic

Buyers continue to put down far more cash than before the pandemic. The median down payment of $30,400 is 117.9% higher than in Q3 2019, when buyers typically put down $13,900. That increase reflects both higher home prices, which have risen nearly 45% since 2019, and larger down payment shares.

Down payments climbed steeply between 2020 and 2022 amid more intense competition and record-low mortgage rates, then leveled off at about 14% to 15% of purchase price. While the market has cooled since then, elevated prices and financially strong buyers have kept typical down payments in the upper $20,000 to low $30,000 range.

Higher-Earning, Highly Qualified Buyers Still Dominate: FICO Scores Remain Near Decade High

The typical homebuyer FICO score was 735 in the third quarter of 2025, holding steady at its highest level in more than a decade and roughly 20 points above the national average, another sign that today's market continues to favor financially strong buyers able to navigate higher prices and tighter lending standards.

In fact, through the first seven months of 2025, sales of homes priced above $750,000 rose nearly 6% from a year ago, while lower-priced sales declined about 3%. That shift means expensive homes now account for a larger share of activity, while entry-level home sales continue to lag behind.

Buyers of investment properties and second homes continue to make significantly larger down payments as well, averaging 26.7% and 26.9% of the purchase price, respectively, nearly twice the typical share for primary residences. In dollar terms, those down payments reached $84,200 for investment properties and $110,100 for second homes.

Regional Differences Reflect Market Imbalance

Regional patterns highlight uneven market conditions in the third quarter. Average down payment percentages were highest in the Northeast (18.2%), followed by the West (16.3%), Midwest (14.5%), and South (12.5%).

All four regions saw modest declines in down payment shares compared with a year earlier. The South and West dropped furthest, each down 0.6 percentage points, while the Northeast (-0.2 points) and Midwest (-0.1 point) posted smaller decreases. These patterns align with broader housing trends, from greater inventory recovery and softer demand in the South and West to tighter supply, years of underbuilding, and continued competition in the Northeast and Midwest.

In dollar terms, the Northeast saw a median down payment of $62,900 (+5.6% year over year). The Midwest also saw a modest increase to $28,000 (+5.8%). Meanwhile, the West and South posted declines, with median down payments falling 5.6% to $51,000 and 4.4% to $22,800, respectively.

 

Compared to 2019, the Northeast has seen the largest jump in both down payment share and down payment dollar amount. In Q3 2019, the typical buyer in the region put down 12.3% of the purchase price—nearly six percentage points lower than in 2025. Over that same period, the median down payment has surged to nearly 2.5 times its 2019 level, underscoring how rising prices, fierce competition, and stronger buyer profiles are both drivers and symptoms of shifting market dynamics in one of the nation's most costly regions.

"As mortgage rates edge lower, we expect more variety in who can buy, and that could bring back smaller down payments," said Hannah Jones, Senior Economic Research Analyst at  Realtor.com^®. "However, unless inventory grows meaningfully, renewed competition could put upward pressure on prices and down payments once again."

Methodology

Down payment trends analyzed at the national and state level through Q3 of 2025 using Optimal Blue data. Down payment as a share of sale price is calculated as an average across the data, and down payment as a dollar amount is the median across the data. All comparisons are between the third quarter of the current and previous years unless otherwise stated.

About Realtor.com^®

Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp (NASDAQ:NWS, NWSA]) [ASX: NWS, NWSLV] subsidiary Move, Inc.

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SOURCE Realtor.com