Redfin Reports Lower Mortgage Rates Trim Hundreds off Monthly Payments, yet Homebuyers Are Still Cautious

Pending home sales are up 1% from a year ago, and new listings are stagnant. Redfin agents say some house hunters are staying on the sidelines because they want mortgage rates to drop more significantly before jumping in.

SEATTLE--(BUSINESS WIRE)-- Declining mortgage rates are one factor pushing the median U.S. monthly mortgage payment down to $2,604, more than $200 below May’s all-time high. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket.

The daily average mortgage rate declined to an 11-month low of 6.28% this week, upping homebuyers’ purchasing power by more than $20,000 since mid-summer.

But home-sale prices are still rising: The median sale price was roughly $393,000 during the four weeks ending September 7. That’s up 1.7% year over year, the second-biggest increase since April.

Sale prices are rising partly because new listings are losing steam. New listings are up 1.3% year over year, compared to double-digit increases in early spring. Some prospective sellers are staying put due to lackluster homebuying demand, and some because they don’t want to buy another home while costs are high.

Despite falling mortgage rates, many house hunters are staying on the sidelines. Pending home sales are up just 1.1% year over year, the smallest increase in two months, and Redfin’s Homebuyer Demand Index—a measure of tours and other buying services from Redfin agents—is declining.

Redfin agents say there are some buyers out there. But a lot of buyers are being picky with how they spend their money and are often trying to negotiate with sellers.

“There’s not a flood of buyers now that mortgage rates are coming down, but I am seeing a trickle as some house hunters do the math and realize rates have dropped enough to fit a monthly payment into their budget,” said Nashville, TN Redfin Premier agent Kristin Sanchez. “A lot of house hunters are waiting because they think mortgage rates will drop more when the Fed cuts interest rates in September. I’m trying to advise buyers that’s unlikely to happen, and that now is a good time to lock in a rate.”

The daily average mortgage rate fell from 6.85% a month ago to 6.28% at the start of this week, partly because of two weaker-than-expected jobs reports, and partly because Fed Chair Jerome Powell indicated in his Jackson Hole speech that the Fed will cut rates at its September 17 meeting. Markets have already priced in the upcoming rate cuts; rates are unlikely to fall immediately following next week’s Fed meeting.

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	6.29% (Sept. 10)	Near lowest level in nearly a year	Up from 6.35%	Mortgage News Daily
Weekly average 30-year fixed mortgage rate	6.5% (week ending Sept. 4)	10-month low	Up from 6.35%	Freddie Mac
Mortgage-purchase applications (seasonally adjusted)		Up 7% from a week earlier (as of week ending Sept. 5)	Up 23%	Mortgage Bankers Association
Redfin Homebuyer Demand Index		Down 2% from a month earlier (as of week ending Sept. 7)	Down 10%	A measure of tours and other homebuying services from Redfin agents
Google searches of “homes for sale”		Unchanged from a month earlier (as of Sept. 8)	Up 4%	Google Trends
Touring activity		Up 21% from the start of the year (as of Sept. 7)	At this time last year, it was up 4% from the start of 2024	ShowingTime

Key housing-market data
U.S. highlights: Four weeks ending Sept. 7, 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 Sept. 7, 2025	Year-over-year change	Notes
Median sale price	$392,976	1.7%
Median asking price	$399,634	3.1%
Median monthly mortgage payment	$2,604 at a 6.5% mortgage rate	5.7%	Up $35 from a week earlier, but still near lowest level since January
Pending sales	80,193	1.1%	Smallest increase in 2 months
New listings	89,055	1.3%
Active listings	1,207,985	10.8%	Smallest increase since March 2024
Months of supply	4.4	+0.5 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	30.5%	Down from 33%
Median days on market	45	+7 days
Share of homes sold above list price	24.6%	Down from 28%
Average sale-to-list price ratio	98.5%	Down from 99%

Metro-level highlights: Four weeks ending Sept. 7, 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	Pittsburgh (11.1%) Detroit (9.8%) New Brunswick, NJ (7.1%) Cleveland (6.9%) Milwaukee (5.4%)	Las Vegas (-1.1%) San Francisco (-1%) Portland, OR (-0.9%) San Antonio (-0.6%) Denver (-0.5%)	Declined in 9 metros
Pending sales	Pittsburgh (10.9%) West Palm Beach, FL (10.2%) Chicago (7.3%) Cleveland (7%) Columbus, OH (6.4%)	Houston (-13.8%) Las Vegas (-7.6%) Seattle (-7.5%) Denver (-7.2%) Orlando, FL (-6.1%)
New listings	Pittsburgh (17.4%) Baltimore (16.1%) Minneapolis (11.2%) Montgomery County, PA (10.2%) Boston (7.3%)	Orlando, FL (-16.1%) Tampa, FL (-14.7%) Fort Lauderdale, FL (-12.9%) Riverside, CA (-10.2%) West Palm Beach, FL (-9%)

To view the full report, including charts, please visit:
https://www.redfin.com/news/housing-market-update-lower-mortgage-rates-cautious-homebuyers

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 Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250911384956/en/

Contact Redfin Journalist Services:

Tana Kelley

press@redfin.com

Source: Redfin