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The MReport Webcast: Thursday 9/11/2014

A new report by LendingTree finds that for the first time in a more than a year, the amount homebuyers are spending on down payments is on the rise. According to a report released Wednesday, down payment percentages for conventional 30-year fixed-rate mortgages rose about one and a half percentage points to an average of 17.28 percent from the first to the second quarter. Doug Lebda, founder and CEO of LendingTree, said the upswing is welcome news, signaling that buyers are coming into the market with more available funds.

The states with the lowest average down payment percentage for a 30-year fixed rate conventional loan primarily are in the Midwest and South. West Virginia tops the list of lowest down payments, where the average borrower put down about 14 percent—or roughly 25 thousand dollars—toward a down payment. Arkansas, Nebraska, and Mississippi had similar numbers. Not surprisingly, the states with the highest down payment percentages and amounts are those with some of the highest real estate values, including Hawaii, New Jersey, New York, California, and Connecticut—where borrowers put down between 18 and 21 percent on home purchases in the second quarter.

Applications for mortgage loans took a hard drop in September's first week, ending at their lowest level in nearly 14 years, according to a report from the Mortgage Bankers Association. The group's Weekly Mortgage Applications Survey showed loan applications fell 7.2 percent for the week ending September 5th, declining to the lowest level since December 2000. The week's results include seasonal adjustments and an adjustment for the Labor Day holiday. The latest decline follows a weak August, which saw total application volumes decline a tenth of a percent as home purchase activity fell to a near 20 year low.

 

About Author: Jordan Funderburk

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