LOS ANGELES — This summer, homebuyers chose to reduce their down payments as falling mortgage rates improved their purchasing capacity, although the initial costs still remain quite elevated. In the June to September timeframe, the average down payment percentage for homes in the U.S. was recorded at 14.5%, a slight decrease from 14.7% the same period last year, according to Realtor.com data.

The median down payment across the nation was reported to be $30,319, marking a minimal drop of 0.4% from the third quarter of the previous year. Additionally, both metrics showed a decline from the record highs established in the April to June quarter, where the average down payment reached 14.9% and the median amount climbed to $32,659.

For many Americans, the combination of skyrocketing home prices and rising mortgage rates has made it increasingly difficult to afford homeownership. Larger down payments are generally beneficial as they reduce the mortgage balance needed, leading to lower monthly payments.

However, first-time homebuyers often face significant hurdles, primarily due to the lack of any existing home equity to contribute towards their down payment. Consequently, they represented only 26% of the homes sold last month, as reported by the National Association of Realtors. This figure matches the historical low set in August, whereas first-time buyers typically account for around 40% of home sales.

In the third quarter, down payment amounts decreased in 21 states, as per Realtor.com data. Florida experienced the most substantial drop, witnessing a 24% decline from the previous year, resulting in a median down payment of $27,000. Texas followed, with a 23.2% decrease bringing the median to $14,400. Wyoming came in third, observing a 22.3% reduction, which resulted in a median down payment of $25,200.

Conversely, several states saw increases in down payment amounts during the same period. Rhode Island had the most significant rise, with a 33.3% increase taking the median to $60,400. Following that were Delaware, which saw a jump of 32.8% to a median of $53,600, and Wisconsin, where the median upsurged by 25.2% to $35,500.

At this juncture, it remains uncertain whether down payment levels will continue to decline. In late September, the average rate for a 30-year mortgage fell to 6.08%, the lowest point witnessed in two years. However, this rate has since risen, reaching its highest level in nearly three months. Moreover, home prices have been consistently on the rise, albeit at a more tempered pace.

Economists anticipate that mortgage rates will remain unstable through the rest of the year, but many expect a general easing by 2025. This shift could enhance what home shoppers can afford, granting them greater flexibility regarding their down payments, although it might also prompt an increase in home prices as more buyers re-enter the market.