Median home-sale price falls slightly as mortgage payments remain near record highs.
Source: Original report
For the first time in over three years, the median U.S. home-sale price has declined, marking a notable shift in the housing market. According to a recent report from Redfin, the real estate brokerage powered by Rocket, the median home-sale price stood at $389,601 in the four weeks ending October 25, 2026, a 0.1% decrease year over year. This downtick follows a 0.2% decline the previous week, ending a streak of three consecutive years of price increases.
This price adjustment comes amid a broader cooling of homebuying demand. Pending home sales dropped by 1.8% from the previous week, reaching the lowest level since Redfin began tracking this data in 2021. The decline in demand was universal, with all 50 of the most populous U.S. metro areas experiencing a decrease in pending sales for the third consecutive week.
Mortgage Payments Near Record Highs
Despite the slight dip in home prices, the typical homebuyer's monthly mortgage payment remains elevated. The median mortgage payment reached $2,786, up 10.7% year over year, placing it at the second-highest level on record, just below the previous week's peak. The average mortgage rate stands at 7.32%, down slightly from 7.4% the prior week but still near a three-year high.
These high mortgage payments are contributing to a pullback in would-be sellers. New listings fell by 0.6% from the previous week, hitting their lowest level since the start of the year. Homeowners are reacting to the slow homebuying demand, opting to hold off on listing their properties.
Inventory Levels Show Modest Increase
While new listings are declining, the total number of homes for sale has ticked up by 0.3% from the previous week. This increase in inventory is partly due to the faster pace of pending sales declines, which is helping to maintain a balanced pool of available homes. Nationwide, there are hundreds of thousands more home sellers than buyers, giving buyers more negotiating power than they've had in over a decade.
What This Means for the Housing Market
The recent decline in home prices and the cooling of demand signal a potential shift in the housing market dynamics. Buyers may find more negotiating power and a broader selection of homes to choose from. However, the high mortgage payments and elevated interest rates continue to pose challenges for many would-be buyers.
Looking ahead, the housing market will likely continue to evolve in response to economic conditions, interest rates, and buyer sentiment. For the latest insights and analyses, Redfin's economists provide regular updates on their "From Our Economists" page.
