Monthly housing payments are falling as mortgage rates decline, but many house hunters remain on the sidelines, with pending sales posting their biggest drop in nearly nine months. That’s because sale prices are still near record highs; additionally, some would-be buyers are wary of political and economic instability.
The typical U.S. homebuyer’s monthly housing payment was $2,671 during the four weeks ending July 21, the lowest level in four months and down $166 from the record high set at the end of April. Housing payments are falling because mortgage rates are falling: The weekly average mortgage rate has declined to 6.77%, its lowest level since March, as inflation cools.
Buyers also have more homes to choose from: New listings are up 6.1% year over year, and more listings are growing stale, giving house hunters the opportunity to negotiate. But even though housing payments are declining and inventory is improving, homebuyers remain hesitant. Pending home sales are down 5.7% year over year, the biggest decline in nearly nine months, and mortgage-purchase applications are down 15% (purchase applications are down 4% week over week).
Many would-be buyers are still waiting on the sidelines largely because even though mortgage rates are coming down a bit, home-sale prices are just shy of the record high hit in early July. Additionally, Redfin agents say some house hunters are waiting until after the upcoming presidential election to buy because they don’t want to make a large purchase in the midst of political and economic uncertainty.
“I’m working with several buyers who are waiting for the election before they make a move,” said Matthew Purdy, a Redfin Premier agent in northern Colorado. “Some of them say they’ll only buy a home if their candidate wins. Others are waiting because they feel the economy and housing market are shaky, and hope it will improve after the election. I am working with a few foreign buyers who are wary about investing any more money in U.S. real estate before they see who takes office.”
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 | 6.9% (July 24) | Near lowest level since February; down from 7.14% 3 weeks earlier | Unchanged from 6.9% | Mortgage News Daily |
| Weekly average 30-year fixed mortgage rate | 6.77% (week ending July 18) | Down from 6.89% a week earlier | Essentially unchanged from 6.78% | Freddie Mac |
| Mortgage-purchase applications (seasonally adjusted) | Decreased 4% from a week earlier (as of week ending July 19) | Down 15% | Mortgage Bankers Association | |
| Redfin Homebuyer Demand Index (seasonally adjusted) | Essentially unchanged from a month earlier (as of week ending July 21) | Down 16% | Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents | |
| Touring activity | Up 19% from the start of the year (as of July 22) | At this time last year, it was up 15% from the start of 2023 | ShowingTime, a home touring technology company | |
| Google searches for “home for sale” | Up 12% from a month earlier (as of July 22) | Down 15% | Google Trends | |
Key housing-market data
| U.S. highlights: Four weeks ending July 21, 2024
Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision. |
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| Four weeks ending July 21, 2024 | Year-over-year change | Notes | |
| Median sale price | $395,500 | 4.4% | $1,000 below all-time high set during the 4 weeks ending July 7 |
| Median asking price | $401,250 | 4.9% | |
| Median monthly mortgage payment | $2,671 at a 6.77% mortgage rate | 4.6% | Lowest level since March; $166 below all-time high set during the 4 weeks ending April 28 |
| Pending sales | 81,224 | -5.7% | Biggest decline in nearly 9 months |
| New listings | 92,972 | 6.1% | |
| Active listings | 985,303 | 18.7% | Smallest increase in 3 months |
| Months of supply | 3.6 | +0.7 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 | 38.3% | Down from 44% | |
| Median days on market | 33 | +5 days | |
| Share of homes sold above list price | 31.2% | Down from 36% | |
| Share of homes with a price drop | 6.7% | +1.8 pts. | Highest level on record |
| Average sale-to-list price ratio | 99.5% | -0.5 pts. | |
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Metro-level highlights: Four weeks ending July 21, 2024 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. |
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|---|---|---|---|
| Metros with biggest year-over-year increases | Metros with biggest year-over-year decreases | Notes | |
| Median sale price | Detroit (15.4%)
Providence, RI (14.3%) New Brunswick, NJ (13.2%) Newark, NJ (13%) Milwaukee (12.4%) |
Austin, TX (-3.6%)
Dallas (-1.2%) |
Declined in 2 metros |
| Pending sales | Newark, NJ (7.1%)
San Jose, CA (4%) Boston (3.1%) Cincinnati, OH (2.3%) San Francisco (1.7%) Los Angeles (1.4%) Columbus, OH (0.5%) |
Houston (-28%)
Minneapolis (-16.1%) West Palm Beach, FL (-15.7%) Virginia Beach, VA (-14.3%) Atlanta (-13.6%) |
Increased in 7 metros |
| New listings | San Jose, CA (25.8%)
Las Vegas (20.6%) Miami (17.1%) Phoenix (16.2%) Jacksonville, FL (16.1%) |
Atlanta (-14.2%)
Houston (-10.5%) Detroit (-4%) Chicago (-3.1%) Warren, MI (-2.5%) |
Declined in 8 metros |
Refer to our metrics definition page for explanations of all the metrics used in this report.
United States
Canada