Redfin Reports Homebuyer Down Payments Shrink for First Time in 5 Months

Key Terms

VA loans regulatory

VA loans are home mortgages guaranteed by the U.S. Department of Veterans Affairs for eligible military veterans, active-duty service members, reservists and certain surviving spouses. They matter to investors because the government guarantee reduces lender risk and can boost housing demand for eligible buyers; that influence changes the size and risk profile of mortgage lending, mortgage-backed securities and banks’ loan portfolios—similar to how an insurance policy makes lenders more willing to lend.

The typical homebuyer put down 15.2% of the purchase price, compared with 16.7% a year earlier

SEATTLE--(BUSINESS WIRE)-- The typical U.S. homebuyer’s down payment fell 1.5% year over year to $64,000 in December, the first decline in five months. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket.

The median home sale price rose slightly in December (0.5%) but down payments fell in dollar terms partly because the typical homebuyer put down a lower percentage of the purchase price than a year earlier.

In percentage terms, the typical homebuyer put down 15.2% of the purchase price, compared with 16.7% a year earlier.

“Down payments may be falling in part because Americans are seeking out more affordable homes due to high prices, elevated mortgage rates and economic uncertainty,” said Redfin Principal Economist Sheharyar Bokhari. “Sellers typically prefer buyers who make large down payments because it signals financial stability, but sellers don’t have much say in today’s market. Buyers hold the negotiating power because there are more homes for sale than people who want to buy them.”

It’s worth noting that while mortgage rates remain more than double the all-time low hit during the pandemic, they have come down in recent months. The average 30-year-fixed mortgage rate now sits at 6.09%, which is just shy of the lowest level since 2022. That has helped bring down monthly mortgage payments, which may bring more homebuyers off of the sidelines this year.

Metro-Level Highlights

The data below represents December 2025 and covers 38 of the most populous U.S. metros.

• The median down payment was highest in San Francisco ($400,310), San Jose, CA ($360,000) and Anaheim, CA ($270,800). It was lowest in Virginia Beach, VA ($8,700), Cleveland ($25,025) and Cincinnati ($25,143). Virginia Beach has the highest share of homebuyers taking out VA loans, which require little to no down payment.
• In Orlando, FL, the median down payment fell 23.9% year over year—the largest decline among the metros Redfin analyzed. Next came Cincinnati (-22.6%) and Atlanta (-18.9%). The biggest increases were in Cleveland (31.7%), Providence, RI (20.4%) and Baltimore (20%).
• The median down payment percentage was highest in San Francisco (25%), San Jose (23.9%) and Anaheim (21.4%). It was lowest in Virginia Beach (3%), Atlanta (8.4%) and Las Vegas (8.4%).
• The median down payment percentage fell most in Orlando (-6.3 ppts), Charlotte, NC (-4.4 ppts) and Anaheim (-3.6 ppts). It rose most in Chicago (4.9 ppts), Milwaukee (3.7 ppts) and Cleveland (3 ppts).

To view the full report, including charts, methodology and additional metro-level insights, please visit: https://www.redfin.com/news/down-payments-fall-december-2025

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at https://www.redfin.com/news. For more information about Rocket Companies, visit https://www.rocketcompanies.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260216291444/en/

Redfin Journalist Services:

Kenneth Applewhaite

press@redfin.com

Source: Redfin