\nThe 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. That\u2019s according to a new report<\/a> from Redfin<\/a>, the real estate brokerage powered by Rocket.<\/p>\n
\nMonthly payments fell largely because the weekly average mortgage rate dropped to 6.15% 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 signs of weakness<\/a>. More clarity on how 2026 is shaping up will come with this Friday\u2019s jobs report<\/a>. Home prices are still rising, up 1.1% year over year, but price growth has decelerated from roughly 5% at this time last year.<\/p>\n \nLower 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.<\/p>\n \n\u201cThe housing market is in its holiday hangover season,\u201d said Chen Zhao<\/a>, Redfin\u2019s head of economic research. \u201cProspective homebuyers are focused on getting back into work and school mode rather than hunting for houses\u2014and in some parts of the country, snowy or wet weather 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\u2014and if buyers come, sellers are likely to follow.\u201d<\/p>\n \nRedfin 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<\/a> 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\u2014especially if mortgage rates drop more.\u201d<\/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