Tampa Bay homebuyers are putting less money down
Add Axios as your preferred source to
see more of our stories on Google.
The median home down payment in Tampa Bay was $35,000 in December, or 10% of the purchase price, Redfin data shows. That's down 16% from $41,793 a year earlier.
Why it matters: That's in contrast to what's happening elsewhere in the U.S.
- As mortgage rates hover near 7%, homebuyers are shelling out more money up front to avoid high monthly payments.
The big picture: The median U.S. down payment ticked up to roughly 16% of the purchase price from 15% a year ago, according to a Redfin report.
- The dollar amount climbed around $4,000 to over $63,000 — mainly due to rising home prices.
Between the lines: Buyers who put at least 20% down can avoid the added cost of private mortgage insurance, though some experts say PMI is becoming cheaper.
What we're watching: Many young people are using family cash for down payments.
- Meanwhile, one in five aspiring homeowners say they may never save up enough, per a recent Bankrate survey.
Editor's note: This story has been updated to clarify that it is elsewhere in the U.S. (not in Tampa Bay) that homebuyers' down payments have increased.