The median monthly housing payment was $2,530 during the four weeks ending Oct. 26, down 1.4 percent year-over-year. That’s the biggest decline since November 2024, according to a report from Redfin.
Monthly payments fell mainly because mortgage rates recently declined. The weekly average mortgage rate dropped to 6.19 percent, its lowest level in more than a year, amid a cooler-than-expected inflation report and the Fed’s rate cut. Falling mortgage rates are enough to push monthly payments down despite rising sale prices, according to Redfin. The median home-sale price rose 1.9 percent year-over-year, the second-biggest increase in six months.
Redfin economists don’t expect the Oct. 29 interest-rate cut to drive mortgage rates down further, as it is already priced into markets. The daily average mortgage rate ticked up on Oct. 30 because the Fed indicated it may not cut rates in December, which Redfin said ran counter to expectations.
While homebuying demand is still lackluster, pending home sales are up 1 percent year-over-year, and mortgage-purchase applications are up 5 percent week-over-week. Redfin agents report some would-be buyers are hoping rates drop below 6 percent before moving forward, and others say they are spooked about widespread economic uncertainty.
On the selling side, more people are putting their homes up for sale, Redfin reported. New listings are up 4.6 percent year-over-year, the biggest uptick in five months, as sellers hope buyers will pounce on lower rates. Redfin agents are advising sellers who want to offload their home quickly to price fairly from the start and be open to negotiations.
“Do your research and price correctly from the beginning. The longer your house sits on the market, the lower the sale price is likely to be,” Denver-based Redfin Premier agent Matt Purdy said in a release. “Sellers who price too high will watch their home linger on the market for several months, and they’ll be forced to cut their price — unless their home is in perfect condition and located in a highly desirable neighborhood. With more sellers than buyers out there, buyers are picky and have negotiating power, especially if their purchase isn’t contingent on selling their previous home.”