Monthly payments are falling primarily because mortgage rates have dipped to a 10-month low. But home sales are still lackluster, declining slightly from a year ago.
The typical homebuyer’s monthly mortgage payment is $2,614, the lowest level since January and down $224 from May’s all-time high.
Housing payments are falling mainly because mortgage rates are falling. The weekly average mortgage rate dropped to a 10-month low of 6.58% last week in the wake of a weak July jobs report and a neutral inflation report. It’s worth noting that another reason for declining payments is the seasonality of home-sale prices; they typically peak in late spring and have begun falling by this time of year.
There are several reasons serious house hunters should consider jumping into the market:
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- Mortgage rates are unlikely to fall further. Today’s mortgage rates have already priced in the Fed’s anticipated September interest rate cut; Redfin head of economics research Chen Zhao says the actual rate cut won’t move the needle. Homebuyers have gained about $20,000 in purchasing power since rates hit a peak in May; it’s a good time to lock in a payment.
- Home prices are rising. Monthly payments are falling despite home-sale prices increasing from a year ago. The median U.S. sale price was $394,498 during the four weeks ending August 17, up 1.9% year over year, the biggest increase in four months. Prices may continue accelerating because inventory is decelerating.
- Supply of for-sale homes is dwindling. New listings are up just 0.5% year over year, and while the total number of homes for sale is up 10.7%, that’s the smallest increase in nearly 18 months. Some would-be sellers are pulling back because demand is slow, and they don’t want to sell their homes for less money than expected.
- Homes are taking a long time to sell, giving buyers negotiating power–for now. The typical home is spending 42 days on the market before going under contract, a week longer than last year and the longest span for this time of year since 2019. Redfin agents report that for listings sitting longer than a few weeks, sellers are often willing to negotiate. They’re accepting offers under asking price and/or making concessions to close the deal.
“I’m telling serious buyers that they have leverage right now–and in the Bay Area, that has been unheard of for a long time,” said Josh Felder, a Redfin Premier agent in San Francisco. “There’s less competition than usual because of economic uncertainty, and the market is no longer tilted in sellers’ favor. I just submitted an offer for a client on a townhouse in Mountain View, which is in Google land and would have gotten between five and 10 offers a year ago. We offered close to the asking price with no competition, and got it. Prices are still high, but first-time buyers have a window.”
For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.
Leading indicators
| Indicators of homebuying demand and activity | ||||
| Value (if applicable) | Recent change | Year-over-year change | Source | |
| Daily average 30-year fixed mortgage rate | 6.61% (Aug. 20) | Up from 6.53% a week earlier, but still near 10-month low | Essentially flat | Mortgage News Daily |
| Weekly average 30-year fixed mortgage rate | 6.58% (week ending Aug. 14) | 10-month low | Up from 6.49% | Freddie Mac |
| Mortgage-purchase applications (seasonally adjusted) | Essentially flat (+0.1%) from a week earlier (as of week ending Aug. 15) | Up 23% | Mortgage Bankers Association | |
| Redfin Homebuyer Demand Index | Down 1% from a month earlier (as of week ending Aug. 17) | Down 8% | A measure of tours and other homebuying services from Redfin agents | |
| Google searches of “homes for sale” | Down 10% from a month earlier (as of Aug. 20) | Up 10% | Google Trends | |
Key housing-market data
| U.S. highlights: Four weeks ending Aug. 17, 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. 17, 2025 | Year-over-year change | Notes | |
| Median sale price | $394,498 | 1.9% | |
| Median asking price | $398,725 | 3.1% | |
| Median monthly mortgage payment | $2,614 at a 6.58% mortgage rate | 4.1% | Lowest level since January |
| Pending sales | 82,755 | -0.7% | |
| New listings | 90,617 | 0.5% | |
| Active listings | 1,193,043 | 10.7% | Smallest increase since March 2024 |
| Months of supply | 4.2 | +0.6 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 | 32.1% | Down from 35% | |
| Median days on market | 42 | +6 days | |
| Share of homes sold above list price | 25.6% | Down from 29% | |
| Average sale-to-list price ratio | 98.7% | Down from 99.2% | |
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Metro-level highlights: Four weeks ending Aug. 17, 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 |
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| Median sale price | Cleveland (12.4%)
Detroit (11%) Pittsburgh (8.8%) Montgomery County, PA (7.6%) Baltimore (6.1%) |
Oakland, CA (-4%)
Dallas (-2.9%) West Palm Beach, FL (-1.8%) Portland, OR (-1.7%) Orlando, FL (-1.1%) |
Declined in 10 metros |
| Pending sales | Pittsburgh (9.8%)
Columbus, OH (6.7%) Cleveland (6.6%) Phoenix (5.9%) Milwaukee (5.8%) |
Houston (-18.7%)
Miami (-16.4%) Seattle (-12.8%) San Diego (-8.8%) Orlando, FL (-8.6%) |
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| New listings | Montgomery County, PA (9.5%)
Pittsburgh (8.8%) Baltimore (8.3%) Cleveland (7.6%) Columbus, OH (7.3%) |
Houston (-13.1%)
Tampa, FL (-12.6%) Orlando, FL (-12.2%) West Palm Beach, FL (-10.8%) Atlanta (-8.1%) |
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Refer to our metrics definition page for explanations of all the metrics used in this report.
