On February 16, 2026, Rocket Companies Inc., through its subsidiary Redfin, released an insightful report revealing a significant shift in the homebuying landscape. The latest data indicates that the typical down payment made by U.S. homebuyers decreased for the first time in five months, marking a pivotal moment in the ongoing evolution of the real estate market.

1. Key Findings from the Report

Down Payments See Year-Over-Year Decline

The report highlights that the average down payment in December 2025 fell by 1.5% compared to the previous year, settling at $64,000. This decline in dollar terms is noteworthy, particularly as it reflects a decrease in the percentage of the purchase price that homebuyers are willing or able to put down. The typical down payment percentage dropped to 15.2%, down from 16.7% a year earlier.

Influences on Homebuyer Behavior

Sheharyar Bokhari, Principal Economist at Redfin, provided insight into the factors driving this trend. He noted that economic uncertainties, high home prices, and elevated mortgage rates are pushing potential buyers toward more affordable housing options. “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,” Bokhari explained. The current market conditions favor buyers, with an ample supply of homes available compared to the number of interested buyers.

Mortgage Rates and Their Impact

Despite mortgage rates remaining significantly higher than the pandemic-era lows, there have been recent declines. The average 30-year fixed mortgage rate now stands at 6.09%, approaching the lowest level seen since 2022. This decrease could potentially stimulate more homebuyers to enter the market, as lower monthly mortgage payments make homeownership more attainable.

2. Metro-Level Insights

The report also sheds light on the varying trends across major metropolitan areas in the U.S., offering a granular view of the market:

Highest and Lowest Down Payments: San Francisco leads with the highest median down payment at an astonishing $400,310, followed by San Jose, CA ($360,000), and Anaheim, CA ($270,800). In contrast, Virginia Beach, VA, recorded the lowest median down payment at just $8,700, largely attributed to the high number of VA loans in the area.

Significant Year-Over-Year Changes: Orlando, FL, experienced the most substantial decline in median down payments, plummeting by 23.9% year over year. Cincinnati and Atlanta also saw notable reductions of 22.6% and 18.9%, respectively. Conversely, Cleveland reported a remarkable increase of 31.7% in median down payments, highlighting the diverse dynamics at play in different markets.

Down Payment Percentages: The report indicates that the highest down payment percentages were recorded in San Francisco (25%), San Jose (23.9%), and Anaheim (21.4%). On the other end of the spectrum, Virginia Beach registered the lowest percentage at 3%.

Trends in Down Payment Percentage Changes

Further analysis shows that the most significant declines in down payment percentages occurred in Orlando (-6.3 percentage points), Charlotte, NC (-4.4 percentage points), and Anaheim (-3.6 percentage points). Meanwhile, cities like Chicago (+4.9 percentage points), Milwaukee (+3.7 percentage points), and Cleveland (+3 percentage points) experienced the most considerable increases.

3. Conclusion

Rocket Companies, through Redfin’s latest findings, paints a complex but revealing picture of the U.S. housing market as it navigates economic challenges and shifts in buyer behavior. The decreasing trend in down payments reflects a broader search for affordability amidst rising prices and mortgage rates. As the market continues to evolve, these insights will be crucial for stakeholders aiming to understand and adapt to the changing landscape of homeownership.

For more detailed insights, charts, and methodology, the full report is available on Redfin's website.

Original press release