Redfin Reports Homebuying and Selling Activity Show Signs of Life Amid Lower Mortgage Rates

The weekly average mortgage rate fell to a 3-year low, nudging some house hunters and sellers off the sidelines

SEATTLE--(BUSINESS WIRE)--U.S. pending home sales fell 2.9% year over year during the four weeks ending January 18, the smallest decline in over a month, as mortgage rates declined. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket.

New listings followed a similar pattern as pending sales: They dipped 1.6% year over year, the smallest decline since November. Mortgage-purchase applications rose 5% week over week to their highest level in three years.

The slight improvements in homebuying demand and home listings are largely the result of falling mortgage rates. The weekly average mortgage rate dropped to a three-year low of 6.06% last week after President Trump ordered $200 billion in mortgage bond purchases. Lower mortgage rates have brought the median U.S. monthly housing payment down to $2,441, a 6.3% decline from this time last year. (The daily average rate has increased from a 3-year low of about 6% in early January to 6.2% this week.)

Even though homebuying and selling activity improved, the homes that are selling are taking a long time to find buyers. The typical home that sold spent 61 days on the market before going under contract, a week longer than last year. That’s largely because it’s a buyer’s market, with home sellers outnumbering buyers by a record margin; many buyers are taking their time with both house hunting and negotiations.

“Buyers have much more power than they’ve had over the past few years,” said Ben Ambroch, a Redfin Premier agent in Milwaukee. “A lot of buyers are giving up a 3% mortgage rate for a 6% rate, so they have high standards for their new home. Buyers are negotiating prices and asking for repairs based on inspections. Sellers are more willing to compromise because listings have been sitting on the market longer; the sellers who need to move are eager to get a deal done.”

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	6.2% (Jan. 21)	Up from 3-year low roughly 2 weeks ago	Down from 7.08%	Mortgage News Daily
Weekly average 30-year fixed mortgage rate	6.06% (week ending Jan. 15)	Lowest level in 3 years	Down from 7.04%	Freddie Mac
Mortgage-purchase applications (seasonally adjusted)		Up 5% from a week earlier (as of week ending Jan. 16)	Up 18%	Mortgage Bankers Association
Redfin Homebuyer Demand Index (seasonally adjusted)		Down about 2% from a month earlier (as of week ending Jan. 18)	Down 11%	A measure of tours and other homebuying services from Redfin agents
Google searches of “homes for sale”		Highest level in 4 months (as of Jan. 20)	Up about 10%	Google Trends

Key housing-market data

U.S. highlights: Four weeks ending Jan. 18, 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. 18, 2025	Year-over-year change	Notes
Median sale price	$378,493	1%
Median asking price	$388,325	0.8%
Median monthly mortgage payment	$2,441 at a 6.06% mortgage rate	-6.3%
Pending sales	52,235	-2.9%	Smallest decline since 4 weeks ending Dec. 14
New listings	56,437	-1.6%	Smallest decline since 4 weeks ending Nov. 30
Active listings	985,492	1.4%	Smallest increase in over 2 years
Months of supply	5.5	+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	21%	Down from 22%
Median days on market	61	+7 days	Longest in at least 3 years
Share of homes sold above list price	19.7%	Down from 21%
Average sale-to-list price ratio	97.8%	Down from 98.1%

Metro-level highlights: Four weeks ending Jan. 18, 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	Philadelphia (8.8%) Cincinnati (7.8%) Cleveland (7.1%) Nassau County, NY (6.9%) Milwaukee (6.1%)	San Jose, CA (-6.7%) Dallas (-3.7%) Portland, OR (-3.1%) Jacksonville, FL (-2.9%) Phoenix (-2.4%)	Declined in 15 metros
Pending sales	Columbus, OH (10%) Nashville, TN (9.7%) West Palm Beach, FL (6.7%) Washington, D.C. (5.3%) Anaheim, CA (4.3%)	San Jose, CA (-32%) San Francisco (-29.4%) Oakland, CA (-24.3%) Houston (-19.7%) Seattle (-19.6%)
New listings	Baltimore (15%) San Jose, CA (13.1%) Pittsburgh (11.5%) Milwaukee (11.2%) Cincinnati (11%)	San Francisco (-21.5%) Jacksonville, FL (-20.9%) Fort Lauderdale, FL (-20.4%) Orlando, FL (-19.5%) Oakland, CA (-18.2%)

To view the full report, including charts, please visit:
https://www.redfin.com/news/housing-market-update-homebuying-selling-improves-slightly

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.