Monthly Housing Costs Start the Year Down 5%, the Biggest Decline in Over a Year

Redfin reports house hunters are getting some relief as mortgage rates dip

SEATTLE--(BUSINESS WIRE)--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, according to a new report from Redfin, the real estate brokerage powered by Rocket.

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%. There may be 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.
	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.
	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

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

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 https://www.redfin.com/news. For more information about Rocket Companies, visit https://www.rocketcompanies.com.