Buyers are putting more money down

Plus: Compass claims collusion between Redfin & Zillow

November 05, 2025

Hi, and welcome back to Mortgage Nuggets. Today’s newsletter is a 2.5-minute read.

Disclaimer: Average mortgage rates as of November 04, 2025. © MND Daily Rate Index.

1. Buyers are putting more money down

Homebuyers are bringing more cash to the table, with the median down payment hitting 19%, the highest in more than twelve years, according to the NAR annual buyer and seller report.

  • First-time buyers put down a median 10%, while repeat buyers contributed 23%, marking the largest gap between the two groups since the early 2000s.

  • The report found that 74% of all buyers financed their purchases, though nearly one in four paid entirely in cash, matching last year’s record high.

  • About half used personal savings for their down payment, while a quarter of first-time buyers drew on 401(k)s, stocks, or other investments.

NAR noted that while most buyers did not need to make major sacrifices to buy, roughly one-third of first-timers found the lending process harder than expected, with debt-to-income ratios and credit scores cited as the main hurdles.

2. Home turnover rate hits 30-year low

Housing turnover has fallen to its lowest level in more than three decades. In 2025, only 2.8% of homes changed hands—down nearly 40% from the 2021 pandemic boom and roughly 31% below 2019 levels. Even with a modest rise in listings, Americans are moving far less than before the pandemic.

More than 70% of mortgage holders have rates below 5%, leaving them effectively locked in as current borrowing costs hover near 6.2%. High prices and economic caution have further dampened movement.

Regional gaps remain wide. Virginia Beach led the nation in turnover, followed by West Palm Beach and Tampa. New York and Los Angeles ranked among the lowest, with California’s Proposition 13 discouraging relocations by capping property-tax increases for long-term owners.

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3. More Nuggets

💼 Government shutdown becomes the longest on record. (AP News)

⚖️ NEXA expands lawsuit against former employee, adds defendants. (HousingWire)

💸 Beeline rolls out blockchain-powered home equity platform. (NMP)

📊 Angel Oak brings DSCR rent calculations to prequal. (BusinessWire)

💉 ION: ‘Ozempic’ may be sold at just $149 a month under a government deal. (WSJ)

4. Mortgage demand slips as rates edge higher

Last week saw a big swing in mortgage interest rates, and that took a toll on demand. Total mortgage application volume fell 1.9% compared with the previous week, according to the MBA’s seasonally adjusted index.

  • For the week, the average contract interest rate for a 30-year fixed-rate mortgage increased to 6.31% from 6.30%

  • Applications to refinance a home loan fell 3% for the week but were still 151% higher than the same week one year ago.

  • Applications for a mortgage to purchase a home fell 1% for the week and were 26% higher than the same week one year ago.

“The average loan size for refinance applications was at its highest level in six weeks, as borrowers with larger loans continued to seek ways to lower their monthly payments. Purchase applications declined, though there was a slight increase in FHA purchase applications as prospective homebuyers continue to seek loan options to help manage affordability.” said Joel Kan, an MBA economist.

5. Compass claims collusion between Redfin & Zillow

Compass accused Zillow of colluding with Redfin and multiple listing services to suppress competition in online home listings, according to a new court filing ahead of a November 18 hearing on Compass’s motion for a preliminary injunction.

The brokerage argues that Zillow’s “listing access standards policy”, which bans listings not entered into an MLS within one business day of public marketing, amounts to monopolistic behavior.

“Zillow is controlling the entire real estate industry,” Compass alleged, claiming Zillow’s enforcement emails blocked nearly 90% of agents from marketing listings elsewhere and that its CEO coordinated with Redfin’s to impose matching restrictions.

☀️ You’re all caught up. See you on Friday!

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