{"id":883577,"date":"2026-01-09T05:14:41","date_gmt":"2026-01-09T11:14:41","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/09\/housing-payments-drop-to-lowest-level-in-2-years-as-mortgage-rates-decline\/"},"modified":"2026-01-09T05:14:41","modified_gmt":"2026-01-09T11:14:41","slug":"housing-payments-drop-to-lowest-level-in-2-years-as-mortgage-rates-decline","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/09\/housing-payments-drop-to-lowest-level-in-2-years-as-mortgage-rates-decline\/","title":{"rendered":"Housing Payments Drop to Lowest Level in 2 Years As Mortgage Rates Decline"},"content":{"rendered":"
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Despite lower monthly mortgage payments, a holiday hangover is muting homebuying demand.\u00a0<\/span><\/i><\/p>\n

The median U.S. 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 the start of 2024.\u00a0<\/span><\/p>\n

Monthly payments fell largely because the weekly average mortgage rate dropped to <\/span>6.15%<\/span><\/a> last week, the lowest level in over a year and down from roughly 7% at the beginning of 2025. Rates are declining because the labor market and overall economy are showing <\/span>signs of weakness<\/span><\/a>; we will know more about how 2026 is shaping up when <\/span>this Friday\u2019s jobs report<\/span><\/a> is released.\u00a0 Home prices are still rising, up 1.1% year over year, but price growth has decelerated from roughly 5% at this time last year.\u00a0<\/span><\/p>\n

Lower monthly payments haven\u2019t 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%. But Redfin economists say they wouldn\u2019t expect a bump in sales or listings this early in the year.\u00a0<\/span><\/p>\n

\u201cThe housing market is in its holiday hangover season,\u201d said <\/span>Chen Zhao<\/span><\/a>, Redfin\u2019s head of economic research.\u00a0 \u201cProspective homebuyers are focused on getting back into work and school mode rather than hunting for houses\u2013and in some parts of the country, <\/span>snowy or wet weather<\/span><\/a> is an obstacle. With mortgage rates and housing payments meaningfully lower than they were a year ago, we may see some buyers emerge in the coming weeks\u2013and if buyers come, sellers are likely to follow.\u201d<\/span><\/p>\n

Redfin agents in some parts of the country say there are promising signs for the new year\u2019s housing market. \u201cHouse hunting has ticked up,\u201d said Jo Chavez<\/a>, a Redfin Premier agent in Kansas City, MO. \u201cMy clients want to buy something now, while homes are sitting on the market longer than usual and a fair amount of sellers are dropping their prices. They know that when the spring season starts, competition will pick up\u2013especially if mortgage rates drop more.\u201d<\/span><\/p>\n

For Redfin economists\u2019 takes on the housing market, please visit Redfin\u2019s \u201c<\/span><\/i>From Our Economists<\/span><\/i><\/a>\u201d page.\u00a0<\/span><\/i><\/p>\n

Leading indicators<\/h3>\n\n\n\n\n\n\n\n\n\n
Indicators of homebuying demand and activity<\/b><\/td>\n<\/tr>\n
<\/td>\nValue (if applicable)<\/b><\/td>\nRecent change<\/b><\/td>\nYear-over-year change<\/b><\/td>\nSource<\/b><\/td>\n<\/tr>\n
Daily average 30-year fixed mortgage rate<\/b><\/td>\n6.19% (Jan. 7)<\/span><\/td>\nLowest level in 2 months<\/span><\/td>\nDown from 7.1%<\/span><\/td>\nMortgage News Daily\u00a0<\/span><\/a><\/td>\n<\/tr>\n
Weekly average 30-year fixed mortgage rate<\/b><\/td>\n6.15% (week ending Dec. 31)<\/span><\/td>\nLowest level in over a year<\/span><\/td>\nDown from 6.91%<\/span><\/td>\nFreddie Mac<\/span><\/a><\/td>\n<\/tr>\n
Mortgage-purchase applications (seasonally adjusted)<\/b><\/td>\n<\/td>\nDown 6% from 2 weeks earlier (as of week ending Jan. 2)<\/span><\/td>\nUp 10%<\/span><\/td>\nMortgage Bankers Association<\/span><\/a>\u00a0<\/span><\/td>\n<\/tr>\n
Redfin Homebuyer Demand Index (seasonally adjusted)<\/b><\/td>\n<\/td>\nDown about 3% from a month earlier (as of week ending Jan. 4)<\/span><\/td>\nDown 17%<\/span><\/td>\nA measure of tours and other homebuying services from Redfin agents<\/span><\/td>\n<\/tr>\n
Google searches of \u201chomes for sale\u201d<\/b><\/td>\n<\/td>\nUp 30% from a month earlier (as of Jan. 4)<\/span><\/td>\nUp 19%<\/span><\/td>\nGoogle Trends<\/span><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Key housing-market data<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
U.S. highlights: Four weeks ending Jan. 4, 2025<\/b><\/p>\n

Redfin\u2019s 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.\u00a0<\/span><\/i><\/p>\n<\/td>\n<\/tr>\n

<\/td>\nFour weeks ending Jan. 4, 2025<\/b><\/td>\nYear-over-year change<\/b><\/td>\nNotes<\/b><\/td>\n<\/tr>\n
Median sale price<\/b><\/td>\n$382,370<\/span><\/td>\n1.1%<\/span><\/td>\n<\/td>\n<\/tr>\n
Median asking price<\/b><\/td>\n$373,500<\/span><\/td>\n1.5%<\/span><\/td>\n<\/td>\n<\/tr>\n
Median monthly mortgage payment<\/b><\/td>\n$2,365 at a 6.15% mortgage rate<\/span><\/td>\n-4.7%<\/span><\/td>\nLowest level in 2 years<\/span><\/td>\n<\/tr>\n
Pending sales<\/b><\/td>\n49,283<\/span><\/td>\n-6.7%<\/span><\/td>\n<\/td>\n<\/tr>\n
New listings<\/b><\/td>\n42,136<\/span><\/td>\n-8.3%<\/span><\/td>\n<\/td>\n<\/tr>\n
Active listings<\/b><\/td>\n1,017,063<\/span><\/td>\n2.3%<\/span><\/td>\nSmallest increase in over 2 years<\/span><\/td>\n<\/tr>\n
Months of supply\u00a0<\/b><\/td>\n4.8<\/span><\/td>\n+0.3 pts.\u00a0<\/span><\/td>\n4 to 5 <\/span>months of supply<\/span><\/a> is considered balanced, with a lower number indicating seller\u2019s market conditions\u00a0<\/span><\/td>\n<\/tr>\n
Share of homes off market in two weeks\u00a0<\/b><\/td>\n20.4%<\/span><\/td>\nDown from 22%<\/span><\/td>\n<\/td>\n<\/tr>\n
Median days on market<\/b><\/td>\n58<\/span><\/td>\n+7 days<\/span><\/td>\n<\/td>\n<\/tr>\n
Share of homes sold above list price<\/b><\/td>\n20.3%<\/span><\/td>\nDown from 23%<\/span><\/td>\n<\/td>\n<\/tr>\n
Average sale-to-list price ratio\u00a0<\/b><\/td>\n98%<\/span><\/td>\nDown from 98.5%<\/span><\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n
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Metro-level highlights: Four weeks ending Jan. 4, 2025<\/b><\/p>\n

Redfin\u2019s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.\u00a0<\/span><\/i><\/p>\n<\/th>\n<\/tr>\n

<\/th>\nMetros with biggest year-over-year increases<\/b><\/th>\nMetros with biggest year-over-year decreases<\/b><\/th>\n\n

Notes<\/b><\/p>\n<\/th>\n<\/tr>\n

Median sale price<\/b><\/th>\nDetroit (10.7%)<\/span><\/p>\n

Cincinnati (8.2%)<\/span><\/p>\n

Chicago (5.9%)<\/span><\/p>\n

Montgomery County, PA (5.6%)<\/span><\/p>\n

Newark, NJ (5.6%)<\/span><\/p>\n<\/th>\n

Dallas (-6.5%)<\/span><\/p>\n

Oakland, CA (-4.5%)<\/span><\/p>\n

San Jose, CA (-4.3%)<\/span><\/p>\n

Jacksonville, FL (-2.6%)<\/span><\/p>\n

Sacramento, CA (-2.2%)<\/span><\/p>\n<\/th>\n

\n

Declined in 19 metros<\/span><\/p>\n<\/th>\n<\/tr>\n<\/thead>\n

Pending sales<\/b><\/td>\nWest Palm Beach, FL (8.6%)\u00a0<\/span><\/p>\n

Anaheim, CA (5.7%)<\/span><\/p>\n

Riverside, CA (4.7%)<\/span><\/p>\n

Virginia Beach, VA (2.7%)<\/span><\/p>\n

Phoenix (2.2%)<\/span><\/p>\n<\/td>\n

San Jose, CA (-37%)<\/span><\/p>\n

Warren, MI (-24.1%)<\/span><\/p>\n

Minneapolis (-22.8%)<\/span><\/p>\n

Oakland, CA (-19.4%)<\/span><\/p>\n

Houston (-19%)<\/span><\/p>\n<\/td>\n

Increased in 9 metros<\/span><\/td>\n<\/tr>\n
New listings<\/b><\/td>\nPittsburgh (4.4%)<\/span><\/p>\n

Baltimore (4.2%)<\/span><\/p>\n

Phoenix (3.3%)<\/span><\/p>\n

Cleveland (0.6%)<\/span><\/p>\n<\/td>\n

Jacksonville, FL (-23.4%)<\/span><\/p>\n

Tampa, FL (-21.9%)<\/span><\/p>\n

Oakland, CA (-21.6%)<\/span><\/p>\n

Dallas (-20.7%)<\/span><\/p>\n

San Antonio (-20.1%)<\/span><\/p>\n<\/td>\n

Increased in 4 metros<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Refer to our<\/span> metrics definition page<\/span><\/a> for explanations of all the metrics used in this report.<\/span><\/p>\n

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Read More<\/a>
\n Dana Anderson<\/p>\n","protected":false},"excerpt":{"rendered":"

Despite lower monthly mortgage payments, a holiday hangover is muting homebuying demand.\u00a0 The median U.S. 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 the start of 2024.\u00a0 Monthly payments fell largely because the weekly average mortgage rate dropped to<\/p>\n","protected":false},"author":1,"featured_media":883578,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22731,4857],"tags":[],"class_list":{"0":"post-883577","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-housing","8":"category-payments"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/883577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=883577"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/883577\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/883578"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=883577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=883577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=883577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}