Typical Homebuyer’s Monthly Payment Down More Than $200 From May Peak, With September’s Anticipated Interest Rate Cut Already Priced Into Mortgage Rates

SEATTLE--(BUSINESS WIRE)--
Redfin reports the median monthly mortgage payment fell to a seven-month low of $2,631 during the four weeks ending August 10, down $215 from its May peak of $2,846. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket. Last week marked the 12th consecutive week that monthly payments either dropped or stayed flat.

Monthly payments are becoming more affordable because mortgage rates are at a 10-month low, falling to 6.53% yesterday—the lowest mark since October 2024. That means that a buyer on a $3,000 monthly budget gained roughly $20,000 in purchasing power since mortgage rates hit a recent peak of 7.08% in May.

Redfin’s head of economics research Chen Zhao said potential homebuyers may end up being too late if they wait for the Federal Reserve to cut interest rates before starting their home search in earnest.

“The mortgage rates that buyers can lock in today have already priced in the likelihood that the Fed will cut rates on September 17,” she said. “That means that mortgage rates are unlikely to drop any further when the Fed actually makes the expected cut. And the window to snag a mortgage rate in the mid-6s may be limited: Increased rate volatility is expected in coming weeks as new economic data is released.”

Meanwhile, the median home price grew to $396,000 during the four weeks ending August 10, up 2.1% year over year—the fastest growth since early April. Last week was the fifth-consecutive week that price growth gained steam after dropping to a two-year low in early July.

Prices rose a little faster even as demand remained depressed, with pending sales ticking down 0.5% from a year earlier and homes spending about a week longer on the market than they did last year.

The total number of homes for sale rose 11.5% year over year during the four weeks ending August 10, the slowest growth since March 2024.

For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

To view the full report, including charts, please visit:

https://www.redfin.com/news/typical-homebuyers-monthly-payment-down-from-may-peak

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250814579988/en/

Contact Redfin Journalist Services:
Tana Kelley
[email protected]

Source: Redfin