\nDeclining mortgage rates have pushed the median U.S. monthly housing payment down to $2,593, the lowest level since January, according to a new report<\/a> from Redfin<\/a>, the real estate brokerage powered by Rocket. The weekly average mortgage rate has ticked down to 6.56%, the lowest level in nearly a year.<\/p>\n
\nLower monthly payments are leading to a modest uptick in home sales. Pending home sales rose 1.6% from a year earlier, in line with the increases Redfin has seen over the last several weeks.<\/p>\n
\nBut sales aren\u2019t surging, likely because it\u2019s still difficult<\/a> for many Americans to afford a home. Home-sale prices rose 1.6% year over year during the four weeks ending August 31, and while monthly payments have fallen from their peak, they\u2019re still up 5% from a year ago.<\/p>\n \n\u201cMortgage rates haven\u2019t come down significantly enough to bring back a flood of buyers. House hunters are on rate watch, hoping they\u2019ll drop below 6%,\u201d said Mariah O\u2019Keefe<\/a>, a Redfin Premier<\/a> agent in Seattle<\/a>. \u201cWell-priced single-family homes in desirable neighborhoods are finding buyers fast, but condos, townhouses, and homes that are not prepped well are taking a long time to sell. The good news for buyers: sellers have come around to less demand; they\u2019re motivated to sell and typically price homes fairly, or are willing to negotiate.\u201d<\/p>\n \nBuyers should keep in mind that while there are more sellers<\/a> than buyers in the market, some would-be home sellers are now opting to stay put because they don\u2019t think they\u2019ll get the price they want. New listings are up just 1.1% year over year, and the total number of homes for sale is up 11.3%\u2014the smallest increase in 18 months. The fact that inventory has declined from its summer peak is one reason sale prices are still rising.<\/p>\n \nRedfin economists caution buyers against waiting for mortgage rates to drop more. Today\u2019s mortgage rates have already priced in<\/a> the Fed\u2019s anticipated interest-rate cut come their September meeting, and rates could increase if Friday\u2019s jobs report is stronger than expected.<\/p>\n \nFor Redfin economists\u2019 takes on the housing market, please visit Redfin\u2019s \u201cFrom Our Economists<\/a>\u201d page.<\/p>\n Leading indicators<\/b><\/p>\n