Buyers still use their savings to pay for a downpayment for a new house.
Via statistics from the Profile of Home Buyers and Sellers, NAR’s Economists’ Outlook blog reports that in 2016, 61 percent of all buyers (76 percent of first-timers and 53 percent of repeat buyers) used savings toward their downpayment.
Nearly a quarter of first-timers also used gifts from relatives or friends, while 53 percent of repeat buyers used proceeds from the sale of a primary residence.
This year, 88 percent of all buyers financed their home and 98 percent of buyers ages 18 through 44 financed the home. All buyers financed a median of 90 percent of the mortgage and had a median downpayment of 10 percent. For first-time buyers, the median percent financed was 94 percent and they put down six percent. For repeat buyers, they financed 86 percent and put down a median of 14 percent.
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