Monthly Housing Costs Start the Year Down 5%, the Biggest Decline in Over a Year
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Key Terms
30-year fixed mortgage ratefinancial
The 30-year fixed mortgage rate is the interest rate charged on a home loan that is paid back over 30 years with consistent monthly payments. Because the rate stays the same throughout the loan period, it provides stability and predictability for homeowners. This rate influences borrowing costs and can impact the overall housing market and consumer spending.
median monthly mortgage paymentfinancial
The median monthly mortgage payment is the middle amount that homeowners pay each month for their home loans, meaning half pay more and half pay less. It provides a snapshot of typical housing costs in a given area or market, helping investors understand how affordable homes are and gauge overall economic stability related to real estate.
pending home salesfinancial
Pending home sales refer to homes that have been sold but where the transaction has not yet been finalized or closed. This measure indicates future activity in the housing market, helping investors gauge whether home buying is increasing or slowing down. Rising pending sales can suggest stronger demand, while falling figures may signal a slowdown in the market.
mortgage-purchase applicationsfinancial
Mortgage-purchase applications are requests submitted by consumers to lenders for home loans used to buy properties, as opposed to loans for refinancing existing mortgages. Investors watch the number and trend of these applications because they act like a real-time thermometer of housing demand and consumer confidence—rising applications suggest stronger home sales, construction activity, and related spending, while falling applications can signal cooling in the housing market and pressure on companies tied to mortgages and homebuilding.
months of supplyfinancial
Months of supply measures how long it would take to sell all available homes at the current sales rate. It is calculated by dividing the total number of homes for sale by the number of homes sold each month. A lower number suggests a faster market with high demand, while a higher number indicates a slower market with more choices for buyers.
sale-to-list price ratiofinancial
The sale-to-list price ratio measures how much of a property's asking price is actually paid by buyers, expressed as a percentage. For example, if a home is listed at $300,000 and sells for $285,000, the ratio is 95%. This figure helps investors gauge the strength of the market: a higher ratio suggests buyers are willing to pay close to asking prices, indicating high demand.
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.
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.
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.
