Housing payments drop to lowest level in 2 years

According to a new housing report published by Redfin Real Estate, the median U.S. monthly housing payment fell to $2,365 during the four weeks ending January 4. This is down 4.7% from a year earlier and is the lowest level since the start of 2024.

Payments fell largely because the average mortgage rate dropped to 6.15%, the lowest level in over a year. Even so, buyer and seller activity remains muted: pending home sales are down 6.7% year over year, and new listings are down 8.3%.

Redfin economists say this reflects a typical “holiday hangover” and note they wouldn’t expect sales or listings to pick up this early in the year, though some agents are starting to see more house-hunting activity in certain markets.