Median Monthly Home Payment Declined 1.4% YOY in October

Seattle, WA, October 30, 2025-"The median U.S. monthly housing payment was $2,530 during the four weeks ending October 26, down 1.4% year over year. That’s the biggest decline since November 2024,” reports Redfin.

“Monthly payments fell mainly because mortgage rates declined last week. The weekly average mortgage rate dropped to 6.19% this week, its lowest level in over a year, amid a cooler-than-expected inflation report and the Fed’s rate cut. Falling mortgage rates are enough to push monthly payments down despite rising sale prices; the median U.S. home-sale price rose 1.9% year over year, the second-biggest increase in six months. 

“It’s worth noting that Redfin economists don’t expect this week’s interest-rate cut to drive mortgage rates down further, as it is already priced into markets. In fact, the daily average mortgage rate ticked up on Thursday because the Fed indicated it may not cut rates in December, running counter to expectations.

“Homebuying demand is still lackluster, but some house hunters are creeping off the sidelines. Pending home sales are up 1% year over year, and mortgage-purchase applications are up 5% week over week. Redfin agents report some would-be buyers are hoping rates drop below 6% before moving forward, and others are spooked about widespread economic uncertainty. 

“On the selling side, more people are putting their homes up for sale. New listings are up 4.6% year over year, the biggest uptick in five months, as sellers hope buyers will pounce on lower rates. Redfin agents advise sellers who want to offload their home as soon as possible to price fairly from the start, and be open to negotiations. 

“‘Do your research and price correctly from the beginning. The longer your house sits on the market, the lower the sale price is likely to be,’ said Matt Purdy, a Redfin Premier agent in the Denver area. ‘Sellers who price too high will watch their home linger on the market for several months, and they’ll be forced to cut their price–unless their home is in perfect condition and located in a highly desirable neighborhood. With more sellers than buyers out there, buyers are picky and have negotiating power, especially if their purchase isn’t contingent on selling their previous home.’”