Courtesy Redfin | November 2025
Lower mortgage rates are curbing growth in monthly housing payments. The typical U.S. monthly payment is $2,556, up 0.6% year over year, the smallest increase in three months. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket.
The daily average mortgage rate dropped to 6.17% this week, near the lowest level in three years. A homebuyer on a $3,000 budget can afford a $473,750 home at today’s mortgage rate, compared to the $447,750 home they could have bought one year ago, when rates were around 6.85%. Compared to one month ago, buyers have gained $9,500 in purchasing power; they could have bought a $464,250 home with rates sitting near 6.4%.
Despite more purchasing power, would-be buyers remain on the sidelines
Pending U.S. home sales fell 0.7% year over year during the four weeks ending October 19, the third straight week of declines.
There are a few reasons buyers are wary. One, the forces pushing mortgage rates down—economic uncertainty and political tensions—are also making some house hunters feel uneasy about making a major purchase. Buyers are also facing stubbornly high prices, with the median home-sale price up 2% year over year, the biggest increase in six months.
The selling side is holding up better. New listings rose 4.6%, the biggest increase in nearly five months, as sellers hope buyers pounce on lower rates. Nationwide, there are half a million more home sellers than buyers.
The big gap between home sellers and buyers, along with the improvement in purchasing power, make it a good time for buyers who can afford today’s high housing costs to jump into the market. Redfin agents in many parts of the country report that it feels like a buyer’s market, with sellers open to lowering the sale price and providing concessions.
“Buyers are scoring deals, especially those who can pay all cash and/or those who are open to new construction,” said Amanda Peterson, a Redfin Premier agent in Dallas. “One recent all-cash buyer paid $500,000 for a condo that was appraised at $685,000—and the seller agreed to pay upfront for six months of pricey HOA dues. And builders are offering steep discounts on new homes, especially in areas where they already have a lot of inventory and are still actively building. Builders are dropping prices, giving up to $20,000 in concessions, throwing in appliances, and buying down mortgage rates, sometimes to below 4%.”
For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.
Redfin Corporation, based in Seattle, provides residential real estate brokerage and mortgage origination services. The company operates in more than 100 markets in the United States and Canada.