Redfin Reports Cheaper Mortgage Payments Bring a Trickle, Not a Surge, of Homebuying Demand
The weekly average mortgage rate has ticked down to its lowest level in over 10 months. But home-sale prices are still rising, and pending home sales are up just 1.6% from a year ago.
Declining mortgage rates have pushed the median U.S. monthly housing payment down to $2,593, the lowest level since January, according to a new report from Redfin, the real estate brokerage powered by Rocket. The weekly average mortgage rate has ticked down to 6.56%, the lowest level in nearly a year.
Lower monthly payments are leading to a modest uptick in home sales. Pending home sales rose 1.6% from a year earlier, in line with the increases Redfin has seen over the last several weeks.
But sales aren't surging, likely because it's still difficult for many Americans to afford a home. Home-sale prices rose 1.6% year over year during the four weeks ending August 31, and while monthly payments have fallen from their peak, they're still up 5% from a year ago.
"Mortgage rates haven't come down significantly enough to bring back a flood of buyers. House hunters are on rate watch, hoping they'll drop below 6%," said Mariah O'Keefe, a Redfin Premier agent in Seattle. "Well-priced single-family homes in desirable neighborhoods are finding buyers fast, but condos, townhouses, and homes that are not prepped well are taking a long time to sell. The good news for buyers: sellers have come around to less demand; they're motivated to sell and typically price homes fairly, or are willing to negotiate."
Buyers should keep in mind that while there are more sellers than buyers in the market, some would-be home sellers are now opting to stay put because they don't think they'll get the price they want. New listings are up just 1.1% year over year, and the total number of homes for sale is up 11.3%—the smallest increase in 18 months. The fact that inventory has declined from its summer peak is one reason sale prices are still rising.
Redfin economists caution buyers against waiting for mortgage rates to drop more. Today's mortgage rates have already priced in the Fed's anticipated interest-rate cut come their September meeting, and rates could increase if Friday's jobs report is stronger than expected.
For Redfin economists' takes on the housing market, please visit Redfin's "From Our Economists" page.
Leading indicators
Indicators of homebuying demand and activity |
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|
Value (if applicable) |
Recent change |
Year-over-year change |
Source |
Daily average 30-year fixed mortgage rate |
6.49% (Sept. 3) |
Lowest level in more than 10 months |
Up from 6.4% |
Mortgage News Daily |
Weekly average 30-year fixed mortgage rate |
6.56% (week ending Aug. 28) |
10-month low |
Up from 6.35% |
Freddie Mac |
Mortgage-purchase applications (seasonally adjusted) |
|
Down 3% from a week earlier (as of week ending Aug. 29) |
Up 17% |
Mortgage Bankers Association |
Redfin Homebuyer Demand Index |
|
Essentially unchanged from a month earlier (as of week ending Aug. 31) |
Down 8% |
A measure of tours and other homebuying services from Redfin agents |
Google searches of "homes for sale" |
|
Up 5% from a month earlier (as of Sept. 2) |
Up 17% |
Google Trends |
Touring activity |
|
Up 27% from the start of the year (as of Aug. 18) |
At this time last year, it was up 10% from the start of 2024 |
ShowingTime |
Key housing-market data
U.S. highlights: Four weeks ending Aug. 31, 2025 Redfin's national metrics include data from 400+ U.S. metro areas and are based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision. |
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|
Four weeks ending Aug. 31, 2025 |
Year-over-year change |
Notes |
Median sale price |
$392,738 |
1.6% |
|
Median asking price |
$396,126 |
3.2% |
|
Median monthly mortgage payment |
$2,593 at a 6.56% mortgage rate |
5% |
Lowest level since January |
Pending sales |
82,861 |
1.6% |
|
New listings |
88,962 |
1.1% |
|
Active listings |
1,211,358 |
11.3% |
Smallest increase since March 2024 |
Months of supply |
4.3 |
+0.5 pts. |
4 to 5 months of supply is considered balanced, with a lower number indicating seller's market conditions |
Share of homes off market in two weeks |
31% |
Down from 33% |
|
Median days on market |
44 |
+7 days |
|
Share of homes sold above list price |
24.9% |
Down from 29% |
|
Average sale-to-list price ratio |
98.6% |
Down from 99.1% |
|
Metro-level highlights: Four weeks ending Aug. 31, 2025 Redfin's metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy. |
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|
Metros with biggest year-over-year increases |
Metros with biggest year-over-year decreases |
Notes |
Median sale price |
Detroit (12.4%) Cleveland (8.8%) Pittsburgh (8.2%) New Brunswick, NJ (7.8%) Virginia Beach, VA (6.7%) |
Dallas (-3.6%) West Palm Beach, FL (-2%) Portland, OR (-1.8%) Orlando, FL (-1.4%) San Francisco (-0.8%) |
Declined in 9 metros |
Pending sales |
Pittsburgh (10.6%) Cleveland (10%) West Palm Beach, FL (8%) Phoenix (7.4%) Portland, OR (6.1%)
|
Seattle (-11.5%) Houston (-10.8%) Detroit (-7.8%) Las Vegas (-5.7%) Orlando, FL (-5.7%)
|
|
New listings |
Pittsburgh (15.3%) New Brunswick, NJ (10%) Baltimore (9.2%) Montgomery County, PA (7.3%) Detroit (7%) |
Orlando, FL (-16.2%) Fort Lauderdale, FL (-13.6%) Tampa, FL (-11.4%) West Palm Beach, FL (-10.4%) Houston (-10.1%) |
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To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-cheaper-mortgage-payments-trickle-of-demand.
About Redfin
Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE:RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin's clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.
You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250904977824/en/
Contact Redfin Journalist Services:
Tana Kelley
[email protected]