Redfin Reports Housing Payments Drop to Lowest Level in Two Years

The median monthly housing payment fell to $2,365 during the four weeks ending January 4–down 4.7% from a year earlier and the lowest level since early 2024, according to Redfin, Seattle.

In a new report, Redfin said monthly payments fell largely because the weekly average mortgage rate recently dropped to 6.15%, the lowest level in more than a year and down from roughly 7% at the beginning of 2025. “Rates are declining because the labor market and overall economy are showing signs of weakness,” the report said. “Home prices are still rising, up 1.1% year over year, but price growth has decelerated from roughly 5% at this time last year.”

But lower monthly payments have not yet brought many homebuyers or sellers back to the market. Pending home sales are down 6.7% year over year and new listings are down 8.3%.

Chen Zhao, Redfin’s head of economic research, said the housing market is in its “holiday hangover” season. “Prospective homebuyers are focused on getting back into work and school mode rather than hunting for houses—and in some parts of the country, snowy or wet weather is an obstacle,” she added. “With mortgage rates and housing payments meaningfully lower than they were a year ago, we may see some buyers emerge in the coming weeks—and if buyers come, sellers are likely to follow.”