House hunters are getting some relief as mortgage rates dip.
The median U.S. monthly housing payment dipped to $2,413 during the four weeks ending January 11, near the lowest level in two years and down 5.5% from a year earlier. That’s the biggest decline since October 2024.
Housing payments are coming down because mortgage rates are falling. The daily average mortgage rate dropped to 5.99% last week, its lowest level in nearly three years, after President Trump ordered federal agencies to buy $200 billion in mortgage bonds (the daily average rate has since ticked up to 6.07%). To look at the impact of declining mortgage rates another way, homebuyers’ purchasing power has increased by roughly $14,000 in the last month and $30,000 in the last six months.
Monthly housing payments would be falling more if not for still-rising sale prices. The median home-sale price is up 1% year over year, though it’s worth noting that’s small compared to the 4% to 5% increases at the start of 2025.
Despite lower housing costs, fewer people are buying and selling homes. Pending home sales fell 5% year over year, and new listings declined 4.7%. We may see an improvement in pending sales soon; last Friday’s significant rate decline, from roughly 6.21% to 5.99%, could result in more homes going under contract in the coming weeks. Mortgage-purchase applications are up 16% week over week, though mortgage applications don’t always line up with home sales.
“Portland buyers typically hibernate in January, with the gloomy weather keeping them inside. But I think this year will be livelier,” said Meme Loggins, a Redfin Premier agent in Portland, OR. “Right now, homes are sitting on the market for several months, and a lot of sellers are cutting their asking price. Buyers know that’s unlikely to last long, especially with rates coming down. Prospective buyers know competition will probably tick up by springtime, so they’re getting serious about house hunting and getting a deal while they can.”
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 | 6.07% (Jan. 14) | Near lowest level in 3 years | Down from 7.26% | Mortgage News Daily |
| Weekly average 30-year fixed mortgage rate | 6.16% (week ending Jan. 8) | Near lowest level in over a year | Down from 6.93% | Freddie Mac |
| Mortgage-purchase applications (seasonally adjusted) | Up 16% from a week earlier (as of week ending Jan. 9) | Up 13% | Mortgage Bankers Association | |
| Redfin Homebuyer Demand Index (seasonally adjusted) | Down about 5% from a month earlier (as of week ending Jan. 11) | Down 9% | A measure of tours and other homebuying services from Redfin agents | |
| Google searches of “homes for sale” | Up more than 20% from a month earlier (as of Jan. 11) | Up 19% | Google Trends | |
Key housing-market data
| U.S. highlights: Four weeks ending Jan. 11, 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 Jan. 11, 2025 | Year-over-year change | Notes | |
| Median sale price | $380,606 | 1% | |
| Median asking price | $380,825 | 1.5% | |
| Median monthly mortgage payment | $2,413 at a 6.16% mortgage rate | -5.5% | Near lowest level in 2 years; biggest decline since October 2024 |
| Pending sales | 48,933 | -5% | |
| New listings | 47,357 | -4.7% | |
| Active listings | 996,087 | 1.9% | Smallest increase in over 2 years |
| Months of supply | 5.1 | +0.2 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 | 19.7% | Down from 21% | |
| Median days on market | 59 | +6 days | |
| Share of homes sold above list price | 20% | Down from 22% | |
| Average sale-to-list price ratio |
97.9% |
Down from 98.1% | |
|
Metro-level highlights: Four weeks ending Jan. 11, 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 | Cincinnati (8.4%)
Detroit (6.5%) Philadelphia (5.8%) Chicago (5.6%) Warren, MI (5.6%) |
Dallas (-4.4%)
San Jose, CA (-3.7%) Jacksonville, FL (-2.7%) Oakland, CA (-2.4%) Portland, OR (-1.8%) |
Declined in 15 metros |
| Pending sales | West Palm Beach, FL (8.1%)
Fort Lauderdale, FL (5.2%) Columbus, OH (5.1%) Nashville, TN (4.9%) Phoenix (4.6%) |
San Jose, CA (-38.1%)
San Francisco (-24.6%) Warren, MI (-24%) Oakland, CA (-22.1%) Minneapolis (-21.1%) |
Increased in 9 metros |
| New listings | Baltimore (12.6%)
Washington, D.C. (7.8%) Pittsburgh (6.6%) Milwaukee (5.8%) Fort Worth, TX (5.1%) Phoenix (3.6%) Cleveland (1.6%) |
San Francisco (-26.7%)
Jacksonville, FL (-25.2%) Oakland, CA (-21.8%) Tampa, FL (-19.7%) Orlando, FL (-17.7%) |
Increased in 7 metros |
Refer to our metrics definition page for explanations of all the metrics used in this report.
