The typical homebuyer’s monthly housing payment hit an all-time high of $2,807 during the four weeks ending March 23, up 5.3 percent from a year earlier, according to a report from Redfin.
Housing costs are soaring for two reasons, according to Redfin’s report. One reason is that sale prices keep rising with the median home-sale price up 3 percent year-over-year. The second factor is that the average weekly mortgage rate is 6.67 percent—more than double pandemic-era lows. Mortgage rates have dropped from an eight-month high of 7.04 percent in January; monthly payments would be even higher if not for the recent decline in rates.
High costs are putting a lid on home sales, according to Redfin. Pending home sales are down 4.6 percent year- over-year, in line with the declines Redfin has seen during the last few months. As spring begins, some house hunters are touring homes and applying for mortgages. Mortgage-purchase applications are at their highest level since the start of February on a seasonally adjusted basis, ShowingTime data signals that home tours are rising faster than they were last year, and Google searches of “homes for sale” are at their highest level since August.
Sellers are entering the market faster than buyers, according to Redfin. New listings of homes for sale are up 7.5 percent year-over-year, the biggest increase so far in 2025.
Redfin agents in many parts of the country say that even though costs are high, some buyers are able to negotiate in their favor.
“Buyers are cautious because they’re worried about the economy and potential layoffs, and they're wondering if mortgage rates will come down later this year. But because other buyers are cautious too, some house hunters are getting homes for under asking price,” Sammamish, Wash.-based Redfin Premier agent Kimberly Freutel said in a release. “If you love a home and you see yourself living there for at least four or five years, make an offer you’re comfortable with, even if it’s a little below list. Don’t assume it will escalate out of your price range, because the seller might actually take it. I’m asking my clients, ‘Would you be sad if this home ends up selling for less than asking price to someone else?’”