Austin, Texas – September 24, 2026 -- The typical U.S. down payment fell to $27,100 in the second quarter, the lowest second-quarter level since 2021, even as higher mortgage rates pushed estimated monthly payments up 74% over five years to $2,376, according to Realtor.com's second-quarter Down Payment Report.
Down payments drop 9.2% year over year despite seasonal rebound
The median down payment rose seasonally to $27,100, or 13.7% of purchase price, in the second quarter from $25,000, or 12.9%, in the first quarter. That still marked a decline of 9.2% in dollar terms and 0.6 percentage points as a share of price versus the $29,900, or 14.3%, recorded a year earlier. The rebound extended into July, when the typical down payment hit an annual high of $28,800, or 14.0%, still 7.5% below year-ago levels.
Rising inventory and falling list prices ease pressure on buyers
Active listings climbed 3.6% year over year in August while median list prices fell 1.3%, marking a tenth straight month of price declines, Realtor.com data show. Hannah Jones, Senior Economist at Realtor.com, said buyers have gained negotiating room, but mortgage rates remain the dominant factor shaping monthly affordability.
Higher rates erase gains from bigger down payments
Although the down payment share is 1.4 percentage points higher than in August 2021, the larger upfront payment delivered only about $39 in monthly relief compared with 2021 habits. The estimated monthly principal-and-interest payment was $80, or 3.5%, higher than in 2025, and would climb a further $58 to $2,434 if rates reach 7%.
Austin illustrates the rate-price disconnect
In Austin, the typical listing price has fallen 18% over five years, yet the estimated monthly payment is still up 33%, as higher rates and smaller down payments have outweighed price declines. Across competitive metros, larger down payments are cutting monthly costs by $205 to $269, while in softer markets, smaller down payments are adding $37 to $82 per month.
Northeast leads regions despite universal year-over-year declines
The Northeast posted the highest down payment share at 18.1% in the second quarter, followed by the West at 15.2%, the Midwest at 14.2% and the South at 11.9%. All four regions saw year-over-year declines. The Northeast's median down payment has risen 238.7% since the second quarter of 2019, compared with a 141.0% increase in the Midwest, reflecting sustained price competition. Realtor.com's Market Clock found 70% of the nation's largest markets favored buyers or were trending buyer-friendly in the second quarter of 2026.