ClosingCorp, a provider of residential real estate closing cost data and technology for the mortgage and real estate services industries, has released its most recent closing cost data, which show that in 2019, the national average closing costs for a single-family property were $5,749, including taxes, and $3,339 excluding taxes.
“In 2019, the U.S. mortgage industry originated more than $2.3 trillion in purchase and refinance loans – a significant year-over-year increase in volume,” says Bob Jennings, CEO of ClosingCorp. “Unlike the cost of many products that spike when demand goes up, the costs associated with mortgage closings remained flat in 2019. This was good news for home buyers. In fact, the difference in the average closing cost between 2018 and 2019 was only $30, including taxes, and $5, excluding taxes.”
Jennings attributes much of the cost control to the increased use of technology by both lenders and settlement services providers, which enabled the industry to scale up capacity while holding the line on closing costs.
“It will be interesting to see if this trend continues in 2020, as record-low interest rates were accelerating refinances just before the industry began to face the national COVID-19 emergency,” he notes.
The 2019 report shows the states with the highest average closing costs, including taxes, were the District of Columbia ($25,800), Delaware ($13,273), New York ($12,847), Washington ($12,406) and Maryland ($11,876).
The states with the lowest closing costs, including taxes, were Indiana ($1,909), Missouri ($2,063), South Dakota ($2,159) and Iowa ($2,194).
The states with the highest average closing costs, excluding taxes, were the District of Columbia ($5,723), New York ($5,612), Hawaii ($5,388), California ($5,064) and Washington ($4,538).
The states with the lowest closing costs, excluding taxes, were Indiana ($1,909), Nebraska ($1,952), Iowa ($1,954) and South Dakota ($2,002).
For more information or for the full report, click here.