A key indicator in the housing market saw its sharpest decline in about a year: the median U.S. monthly housing payment.
TAKE THE INMAN INTEL SURVEY FOR OCTOBER
Median monthly housing payments by Americans during the four weeks ending Oct. 26 fell 1.4 percent year over year to $2,530, according to data released on Thursday by Redfin.
That’s the most significant decline seen since November 2024, Redfin noted.
The drop in monthly payments followed a decrease in mortgage rates, with 30-year fixed-rate mortgages ultimately hitting a 2025 low of 6.12 percent on Tuesday.
Even with home sale prices increasing by their second-biggest rate in six months — by 1.9 percent on an annual basis — monthly payments still came down due to those lower mortgage rates.
However, mortgage rate fluctuations have continued. This week’s rate cut, which is already priced into markets, spurred the average mortgage rate to increase since the Fed stressed it may not cut rates in December, in a blow to homebuyers.
Buyers remain cautious about making moves in the market, but there have been some positive signs. Although the National Association of Realtors reported a slight dip in pending home sales in September, Redfin’s own data from the four weeks ending Oct. 26 showed that pending home sales were up 1 percent year over year. Mortgage purchase applications were also up 5 percent from last week, according to the Mortgage Bankers Association.
Recent mortgage rate cuts have encouraged sellers to get in the market as well. As of the four weeks ending Oct. 26, new listings were up 4.6 percent year over year, the largest increase in the past five months.
As the number of listings increases, it’s also important for agents to help their clients price correctly and give them realistic expectations, Redfin Premier agent Matt Purdy said in Redfin’s report.
“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 location in a highly desirable neighborhood,” Purdy said. “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.”
