Redfin Reports Cheaper Mortgage Payments Bring a Trickle, Not a Surge, of Homebuying Demand

September 04, 2025 at 08:00 AM EDT

The weekly average mortgage rate has ticked down to its lowest level in over 10 months. But home-sale prices are still rising, and pending home sales are up just 1.6% from a year ago.

Declining mortgage rates have pushed the median U.S. monthly housing payment down to $2,593, the lowest level since January, according to a new report from Redfin, the real estate brokerage powered by Rocket. The weekly average mortgage rate has ticked down to 6.56%, the lowest level in nearly a year.

Lower monthly payments are leading to a modest uptick in home sales. Pending home sales rose 1.6% from a year earlier, in line with the increases Redfin has seen over the last several weeks.

But sales aren’t surging, likely because it’s still difficult for many Americans to afford a home. Home-sale prices rose 1.6% year over year during the four weeks ending August 31, and while monthly payments have fallen from their peak, they’re still up 5% from a year ago.

“Mortgage rates haven’t come down significantly enough to bring back a flood of buyers. House hunters are on rate watch, hoping they’ll drop below 6%,” said Mariah O’Keefe, a Redfin Premier agent in Seattle. “Well-priced single-family homes in desirable neighborhoods are finding buyers fast, but condos, townhouses, and homes that are not prepped well are taking a long time to sell. The good news for buyers: sellers have come around to less demand; they’re motivated to sell and typically price homes fairly, or are willing to negotiate.”

Buyers should keep in mind that while there are more sellers than buyers in the market, some would-be home sellers are now opting to stay put because they don’t think they’ll get the price they want. New listings are up just 1.1% year over year, and the total number of homes for sale is up 11.3%—the smallest increase in 18 months. The fact that inventory has declined from its summer peak is one reason sale prices are still rising.

Redfin economists caution buyers against waiting for mortgage rates to drop more. Today’s mortgage rates have already priced in the Fed’s anticipated interest-rate cut come their September meeting, and rates could increase if Friday’s jobs report is stronger than expected.

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	6.49% (Sept. 3)	Lowest level in more than 10 months	Up from 6.4%	Mortgage News Daily
Weekly average 30-year fixed mortgage rate	6.56% (week ending Aug. 28)	10-month low	Up from 6.35%	Freddie Mac
Mortgage-purchase applications (seasonally adjusted)		Down 3% from a week earlier (as of week ending Aug. 29)	Up 17%	Mortgage Bankers Association
Redfin Homebuyer Demand Index		Essentially unchanged from a month earlier (as of week ending Aug. 31)	Down 8%	A measure of tours and other homebuying services from Redfin agents
Google searches of “homes for sale”		Up 5% from a month earlier (as of Sept. 2)	Up 17%	Google Trends
Touring activity		Up 27% from the start of the year (as of Aug. 18)	At this time last year, it was up 10% from the start of 2024	ShowingTime

Key housing-market data

U.S. highlights: Four weeks ending Aug. 31, 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. 31, 2025	Year-over-year change	Notes
Median sale price	$392,738	1.6%
Median asking price	$396,126	3.2%
Median monthly mortgage payment	$2,593 at a 6.56% mortgage rate	5%	Lowest level since January
Pending sales	82,861	1.6%
New listings	88,962	1.1%
Active listings	1,211,358	11.3%	Smallest increase since March 2024
Months of supply	4.3	+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	31%	Down from 33%
Median days on market	44	+7 days
Share of homes sold above list price	24.9%	Down from 29%
Average sale-to-list price ratio	98.6%	Down from 99.1%

Metro-level highlights: Four weeks ending Aug. 31, 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	Detroit (12.4%) Cleveland (8.8%) Pittsburgh (8.2%) New Brunswick, NJ (7.8%) Virginia Beach, VA (6.7%)	Dallas (-3.6%) West Palm Beach, FL (-2%) Portland, OR (-1.8%) Orlando, FL (-1.4%) San Francisco (-0.8%)	Declined in 9 metros
Pending sales	Pittsburgh (10.6%) Cleveland (10%) West Palm Beach, FL (8%) Phoenix (7.4%) Portland, OR (6.1%)	Seattle (-11.5%) Houston (-10.8%) Detroit (-7.8%) Las Vegas (-5.7%) Orlando, FL (-5.7%)
New listings	Pittsburgh (15.3%) New Brunswick, NJ (10%) Baltimore (9.2%) Montgomery County, PA (7.3%) Detroit (7%)	Orlando, FL (-16.2%) Fort Lauderdale, FL (-13.6%) Tampa, FL (-11.4%) West Palm Beach, FL (-10.4%) Houston (-10.1%)

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-cheaper-mortgage-payments-trickle-of-demand.

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.