( NewsNation ) — Homebuyers are putting down more money than ever to soften the blow of high mortgage rates , and in some cities, $400,000 down payments are now the norm.
The typical down payment for U.S. homebuyers hit a record $67,500 in June, nearly 15% higher than a year earlier, according to a new Redfin analysis . That jump significantly outpaced the rise in home prices, which went up 4% year over year.
In several California cities, buyers are putting down much more. San Jose ($451,500) and San Francisco ($441,500) had the highest median down payments in the country. Anaheim ($300,000) ranked third, and Oakland ($195,000) ranked sixth.
Down payments are also higher in percentage terms, reaching almost 19% of the purchase price in June. That’s up from 15% a year ago and the highest level in over a decade, Redfin found.
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Elevated mortgage rates are driving the trend. By putting down more money upfront, buyers can lower their monthly payments. At 6.92%, June’s average mortgage rate was near a 20-year high, and the typical monthly mortgage payment was $2,785 .