Lenders appear to have more confidence to loan with less cash down from qualified borrowers, as down payment percentages for 30-year, fixed rate purchase mortgages continue to decline. A new report reveals that the average down payment has dropped 2.74 percent since Q2 2013, according to a study released by Lending Tree. As home values improve, the risk of borrowers defaulting on loans has decreased, so lenders have adjusted minimum requirements to attract borrowers.
- The average down payment on a 30-year, fixed-rate mortgage loan in the third quarter of this year was 15.73 percent.
- According to Lending Tree, the national average loan amount for a mortgage loan originated in the third quarter was about $218,344.
- New Jersey (18.8percent), California (18.6 percent), New York (18.0), D.C. (17.9 percent), and Massachusetts 17.5%) top the list with the highest average down payment percentages.
- The lowest average down payment percentage in the third quarter took place in Nebraska, where down payments averaged 12.5 percent of loan values.
- South Dakota (12.8) percent), Arkansas (12.9 percent), and Alabama (12.9 percent) followed Nebraska in the next lowest down payments. They all average under 13 percent for the quarter.
- D.C. ranked highest in loan amount with an average of $309,768 in the third quarter.
Low inventory may ease as more owners are able to sell, as the number of Americans who owe more on
their mortgages than their homes are worth fell at the fastest pace on record in the third quarter with
prices increasing. Owners are finding it easier to list properties and buy a new place because the share of
owners with at least 20 percent equity climbed to 60.8 percent from 58.1 percent.
- As more people gain the equity they need to sell their house and have a down payment for then next one, home sales are expected to pick up.
- The pent-up demand created by the low inventory is evident in the fact that the number of homes for sale reached a low of 1.8 million in early 2013, which was the fewest in more than a decade.
- As the real estate market recovers, furniture sales and renovations will add to consumer spending as homeowners build equity and opt to sell their homes.
- According to Zillow, 10.8 million homeowners were underwater on their mortgages in the third quarter, down from 12.2 million in the second quarter.
- There are about 20 million people who had negative equity or less than 20 percent equity, down from 21.5 million in the prior three months.
- The median price of an existing home rose 12.8 percent last month. In August, it increased 13.4 percent, which was the fastest rate since the height of the real estate boom in 2005.
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Through January 5th 2014 – Ice Skating at the Hotel Del Coronado
December 2-13th, 2013: Mail Your Letters to Santa Clause – see mailbox at the Coronado Community Center Lobby
December 6th, 2013 – Christmas Parade and Events: 3:20pm Santa Arrives by Ferry at Coronado Ferry Landing; 3-7 Snow Mountain at Ferry Landing; 5-9pm Open House on Orange Avenue; 6pm Christmas Parade; 7pm Lighting of the 75-foot Rotary Park Christmas Tree; 7:15 pmCommunity Band Concert at Rotary Plaza
December 7th, 2013 Artisans’ Alley Craft Fair: 9am – 3pm – Village Elementary playground
December 8th, 2013: Christmas Choral Concert at St. Paul’s Methodist Church
December 8th and 15th, San Diego Parade of Lights
Breakfast with Santa – Saturday, December 14, 2013
Take a walk down Orange Avenue and sample the culinary expertise of our local chefs during the fourth annual Taste of Coronado, on Wednesday, October 16th, 5:00-9:00 pm. Tickets are $35 in advance and $40 the day of the event. Tickets are sold at BE Polished, the Glorietta Bay Inn, and online at the purplepass.com. Tickets are open to all ages but you must be 21 or older to participate in alcohol tastings. Bring your tickets to one of the following ticket locations on Orange Ave: Rotary Plaza at the 1000 block of Orange Ave or 101 B Avenue. Your ticket will be exchanged for a tasting card and you can start your tastings at either end of Orange Avenue.