Down payments strech 18-year high in third quarter

Intense foe among homebuyers stays as shown by a continual expansion of median down payments, according to Attom Data Solutions.

The median down remuneration on single-family homes and condos purchased with financing continues climbing, reaching a new high-water symbol given a data’s 2000 origin. The third entertain of 2018 had a median of $20,250, adult 16% year-over-year and adult 7% from the prior quarter’s $19,900.

“Despite all a signs of cooling demand, a rising down remuneration commission is justification that this housing marketplace is still utterly rival and lending standards are not almost relaxation in response to that weakening demand,” Daren Blomquist, comparison clamp boss during Attom, pronounced in a matter to NMN.

The third-quarter down remuneration figure was 7.6% of a median sales price, imprinting a top commission given a fourth entertain of 2003. It’s a arise from a 6.8% share from a year ago and final quarter’s 7.2%.

“Rising debt rates might even be call buyers to put some-more down in an bid to reduce their monthly payments and secure a some-more savoury debt-to-income ratio — both for them and for their lender,” Blomquist said.

San Jose, Calif., led all housing markets by down remuneration commission of sales cost during 24.7%, with San Francisco during 23.3% and Los Angeles right behind during 20.6%.

While median down payments strike a new high, debt originations declined annually for a fourth uninterrupted quarter. The third quarter’s 892,760 squeeze debt originations fell 2% year-over-year and 5% quarter-over-quarter.

“Rising debt rates continued to moderate direct for mortgages in a third quarter, quite refinance mortgages,” Blomquist pronounced in a press release. “There were some important exceptions to that trend, essentially in markets influenced by a hurricanes in a third entertain of 2017.”

The volume of home equity lines of credit also dropped. The third quarter’s 313,744 HELOCs was an 11% year-over-year decrease and down 14% from final quarter.

Article source: http://www.nationalmortgagenews.com/news/down-payments-reach-18-year-high-in-third-quarter

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