Although the housing market has remained tight this year, by the last quarter of 2025, housing prices began to ease, further boosting supply; However, some buyers are holding back due to the high down payment costs, which are proving to be a significant challenge for prospective homeowners.

By December, 30-year mortgage rates stood at 6.31%, influenced by high inflation and changes in monetary policy. Although home prices emerged due to a lack of inventory, they have decreased in recent months, showing greater affordability.

Nevertheless, the US Census Bureau stated that down payments remain the biggest obstacle, even though they fell to 65% in the second half of this year, one of the lowest levels since 2019.

Based on this data, Realtor.com indicates that a typical buyer will need at least seven years for the down payment.

However, a greater supply could further reduce costs and increase sales. Furthermore, home prices this year have shown differences from market to market, according to the S&P Realtor City-Shiller index. “The greater variety of options compared to last year is also attracting more buyers to the market,” said Lawrence Yun, chief economist at Realtor.com, in a statement.

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