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new Redfin report suggests that homebuyers are opting for less expensive homes due to ongoing economic concerns. This shift is reflected in declining down payments, which have dropped by 1% compared to last year. In April, the typical down payment was $62,468, representing 15% of the home purchase price.

    This decline in dollar-amount down payments is a departure from recent trends, where down payments were increasing as home prices rose. However, it's not entirely unexpected, given that buyers are seeking more affordable options to mitigate financial risks. Redfin notes that an uptick in FHA and VA loans, which require lower down payments, may also be contributing to this trend.

    The shift towards less expensive homes is likely driven by economic uncertainty, including concerns about tariffs and other factors. As Dana Anderson, a data journalist at Redfin, suggests, some buyers may be seeking cheaper homes to have more financial security. Additionally, the recent transition from a seller's market to more balanced markets in many metro areas could also be influencing this trend.

    The use of FHA and VA loans has increased, with 15.3% of mortgage sales using an FHA loan in April, up from 14.2% last year. For VA loans, the share was 7.2%, up from 6.4%. This rise in FHA and VA loans is another sign of softening demand.

    Despite elevated mortgage rates, all-cash offers remain a significant portion of home sales, with 30.7% of homes sold through this method in April, down slightly from the previous year.