US Median Monthly Housing Payment Posts Largest Decline in Nearly a Year

On Thursday, Redfin reported that the median US monthly housing payment fell 1.4% year-over-year to $2,530 during the four weeks ending October 26—the largest annual decline since November 2024.

Redfin said payments dropped mainly because mortgage rates declined. The weekly average mortgage rate fell to 6.19%, its lowest level in more than a year, following a cooler-than-expected inflation report and the Federal Reserve’s rate cut. Despite rising sale prices—up 1.9% year-over-year, the second-largest gain in six months—lower rates have reduced overall payments.

Redfin economists said they do not expect the Fed’s latest rate cut to push mortgage rates much lower, as the move is already priced into markets. The daily average mortgage rate ticked up Thursday after the Fed signaled it may not cut again in December.

Homebuying demand remains subdued, although activity is showing tentative improvement. Pending home sales are up 1% year-over-year, and mortgage-purchase applications rose 5% week-over-week. Redfin agents report some buyers are waiting for rates to dip below 6%, while others remain cautious amid economic uncertainty.

On the supply side, new listings rose 4.6% year-over-year—the biggest increase in five months—as sellers look to take advantage of lower rates.