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Redfin reports many would-be buyers are still spooked by rising sale prices and economic instability, but some are creeping off the sidelines

SEATTLE--(BUSINESS WIRE)--Oct. 30, 2025-- The median U.S. monthly housing payment was $2,530 during the four weeks ending October 26, down 1.4% year over year. That’s the biggest decline since November 2024, according to a new report from Redfin, the real estate brokerage powered by Rocket.

Monthly payments fell mainly because mortgage rates declined last week. The weekly average mortgage rate dropped to 6.19% this week, its lowest level in over 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; the median U.S. home-sale price rose 1.9% year over year, the second-biggest increase in six months.

It’s worth noting that Redfin economists don’t expect this week’s interest-rate cut to drive mortgage rates down further, as it is already priced into markets. In fact, the daily average mortgage rate ticked up on Thursday because the Fed indicated it may not cut rates in December, running counter to expectations.

Homebuying demand is still lackluster, but some house hunters are creeping off the sidelines. Pending home sales are up 1% year over year, and mortgage-purchase applications are up 5% week over week. Redfin agents report some would-be buyers are hoping rates drop below 6% before moving forward, and others are spooked about widespread economic uncertainty.

On the selling side, more people are putting their homes up for sale. New listings are up 4.6% year over year, the biggest uptick in five months, as sellers hope buyers will pounce on lower rates. Redfin agents advise sellers who want to offload their home as soon as possible 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,” said Matt Purdy, a Redfin Premier agent in the Denver area. “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.”

For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

Leading indicators

Key housing-market data

To view the full report, including charts, please visit:
https://www.redfin.com/news/housing-market-update-monthly-payments-biggest-decline-in-year

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/20251030689060/en/

Contact Redfin Journalist Services:
Tana Kelley
press@redfin.com

Source: Redfin