Typical Homebuyer’s Monthly Payment Down More Than $200 From May Peak, With September’s Anticipated Interest Rate Cut Already Priced Into Mortgage Rates

SEATTLE--(BUSINESS WIRE)-- Redfin reports the median monthly mortgage payment fell to a seven-month low of $2,631 during the four weeks ending August 10, down $215 from its May peak of $2,846. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket. Last week marked the 12th consecutive week that monthly payments either dropped or stayed flat.

Monthly payments are becoming more affordable because mortgage rates are at a 10-month low, falling to 6.53% yesterday—the lowest mark since October 2024. That means that a buyer on a $3,000 monthly budget gained roughly $20,000 in purchasing power since mortgage rates hit a recent peak of 7.08% in May.

Redfin’s head of economics research Chen Zhao said potential homebuyers may end up being too late if they wait for the Federal Reserve to cut interest rates before starting their home search in earnest.

“The mortgage rates that buyers can lock in today have already priced in the likelihood that the Fed will cut rates on September 17,” she said. “That means that mortgage rates are unlikely to drop any further when the Fed actually makes the expected cut. And the window to snag a mortgage rate in the mid-6s may be limited: Increased rate volatility is expected in coming weeks as new economic data is released.”

Meanwhile, the median home price grew to $396,000 during the four weeks ending August 10, up 2.1% year over year—the fastest growth since early April. Last week was the fifth-consecutive week that price growth gained steam after dropping to a two-year low in early July.

Prices rose a little faster even as demand remained depressed, with pending sales ticking down 0.5% from a year earlier and homes spending about a week longer on the market than they did last year.

The total number of homes for sale rose 11.5% year over year during the four weeks ending August 10, the slowest growth since March 2024.

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	6.53% (Aug. 13)	10-month low	Up from 6.52%	Mortgage News Daily
Weekly average 30-year fixed mortgage rate	6.63% (week ending Aug. 7)	Lowest rate since week ending Apr. 10	Up from 6.47%	Freddie Mac
Mortgage-purchase applications (seasonally adjusted)		Up 1% from a week earlier (as of week ending Aug. 8)	Up 17%	Mortgage Bankers Association
Redfin Homebuyer Demand Index		Down 1% from a month earlier (as of week ending Aug. 10)	Down 4%	A measure of tours and other homebuying services from Redfin agents
Touring activity		Up 28% from the start of the year (as of Aug. 2)	At this time last year, it was up 13% from the start of 2024	ShowingTime, a home touring technology company

Key housing-market data
U.S. highlights: Four weeks ending Aug. 10, 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 Aug. 10, 2025	Year-over-year change	Notes
Median sale price	$396,000	2.1%	Roughly $2,500 shy of all-time high
Median asking price	$399,675	2.6%
Median monthly mortgage payment	$2,631 at a 6.63% mortgage rate	3.8%
Pending sales	84,177	-0.5%
New listings	92,854	1%
Active listings	1,197,572	11.5%	Smallest increase since March 2024
Months of supply	4.2	+0.6 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	32.8%	Down from 35.7%
Median days on market	41.25	+6.5 days
Share of homes sold above list price	26.1%	Down from 29.6%
Average sale-to-list price ratio	98.8%	Down from 99.2%

Metro-level highlights: Four weeks ending Aug. 10, 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	Cleveland (12.7%) Detroit (10.2%) Pittsburgh (7.2%) Montgomery County, PA (6.8%) Nassau County, NY (6.4%)	Oakland, CA (-2.5%) San Francisco (-2.5%) Dallas (-2.2%) Fort Worth, TX (-1.9%) Houston (-1.1%)	Declined in 10 metros
Pending sales	Milwaukee (8.2%) Austin, TX (7.4%) Columbus, OH (6.7%) Pittsburgh (6.4%) Virginia Beach, VA (6.1%)	Houston (-14.9%) Miami (-13.4%) Las Vegas (-12.2%) Portland, OR (-12.1%) Orlando, FL (-9.2%)
New listings	Montgomery County, PA (10.7%) Cleveland (8.1%) Washington, D.C. (7.0%) Pittsburgh (6.1%) Milwaukee (5.9%)	Portland, OR (-16.2%) Tampa, FL (-10.8%) Orlando, FL (-10.2%) West Palm Beach, FL (-9.1%) Sacramento, CA (-8.5%)

To view the full report, including charts, please visit:
https://www.redfin.com/news/typical-homebuyers-monthly-payment-down-from-may-peak

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/20250814579988/en/

Contact Redfin Journalist Services:

Tana Kelley

press@redfin.com

Source: Redfin