Down payments are at an all-time high – this is how much you need to buy a house

The average down payment for U.S. homebuyers has reached a record high of $67,500, new facts has revealed.

Higher mortgage rates encourage home buyers to put down more money to soften the blow.

This, combined with rising home prices, means that down payments of more than $400,000 are now the norm in some US cities.

Redfin’s analysis shows that down payments also increased in percentage terms.

The average homebuyer put down 18.6 percent of the purchase price of a home in June, the highest percentage in more than a decade and up from 15 percent last year.

Cities in California top the list of cities where home buyers have to pay the most money up front when purchasing a home.

According to Redfin, the typical down payment in San Jose is $451,500, while the average amount in San Francisco is $441,500.

In Anaheim, the norm is to have a down payment of $300,000, while in Oakland the average down payment is $195,000.

Other major cities where down payments typically hover around $200,000 include Seattle, where the average amount is $206,950, and New York City, where buyers pay an average of $199,775.

In San Francisco, the average down payment was also 25.8 percent of the purchase price, the highest percentage of any metro area analyzed by Redfin.

This was followed by San Jose with 25.7 percent and Anaheim with 25 percent.

Down payment rates tend to be higher in the San Francisco Bay Area because there is a greater concentration of wealthy residents who can put down a higher percentage of the purchase price.

“In San Jose, there are a lot of foreign investors who buy homes without ever seeing them, and a lot of real estate brokers who buy dilapidated homes, put a little lipstick on them and sell them for a profit,” Craig Pellegrini, a Redfin Premier agent in San Jose, said in a report earlier this month.

The nearly 15 percent increase in the average U.S. down payment was significantly larger than the increase in home prices, which rose 4 percent year-over-year in June.

Down payments are skyrocketing because buyers tend to pay more money up front and borrow less when mortgage rates are higher, trying to minimize their monthly payments.

Rising house prices naturally also lead to a higher down payment, a percentage of the house price.

With house prices rising, people who sell their previous home for more than they bought it for can also use the extra value to put down a larger down payment on their new home.

“Investors are still making cash offers on homes that need renovation. Traditional buyers are paying big bucks to reduce their mortgage payments,” said Annie Foushee, a Redfin agent in Denver.

‘These buyers often use the help of family members to pay more than they could themselves.’

According to Redfin, the typical down payment in San Jose is $451,500

Down payment percentages tend to be higher in the San Francisco Bay Area due to the higher concentration of affluent residents who can afford to put a higher percentage down

There are still some large metropolitan areas where down payments are well below the national average.

In Virginia Beach, the average down payment in June was $9,195, with a typical down payment rate of 3 percent.

Redfin noted that the area has a higher concentration of veterans taking out VA loans with little to no down payment.

Of all major cities, Detroit has the second-lowest average down payment at $16,000, while homebuyers in Cleveland average $26,850 and Pittsburgh $28,000.

This comes after Vice President Kamala Harris proposed providing $25,000 in aid to first-time home buyers if she wins the presidential election in November.

The details of the plan and exactly who will qualify for the down payment assistance have not yet been released.

However, some economists worry that this advantage would lead to more competition for the limited housing supply, further pushing up house prices.