US Housing Payments Drop to Lowest Level in Nearly Two Years, According to Report
American Real Estate Association co-founder Jason Haber unpacks the state of the housing market and assesses Redfin’s announcement of a ‘great housing reset’ coming in 2026 on ‘The Claman Countdown.’
The median U.S. monthly housing payment has recently dropped to its lowest level in nearly two years, although it could have decreased further if not for the ongoing rise in sale prices, according to a recent report from Redfin.
During the four weeks ending January 11, the monthly housing payment fell to $2,413. Despite this decline, the national median home-sale price increased by 1% year over year. This is a notable decrease from the 4% to 5% growth observed at the beginning of 2025, as highlighted in the brokerage’s Thursday report.
In some regions, however, prices surged at a much higher rate. For example, in Cincinnati, Ohio, the median home-sale price rose by an impressive 8.4% year over year—more than eight times the national increase.
MORTGAGE RATES FALL TO LOWEST LEVEL SINCE 2022
Detroit and Philadelphia also saw significant increases, with median home-sale prices rising by 6.5% and 5.8% year over year, respectively.
The median home-sale price rose 6.5% on an annual basis. (Roberto Machado Noa/LightRocket via Getty Images)
The metros that experienced the largest declines were primarily located in the South and on the West Coast. Notably, Dallas and San Jose, California, saw median home-sale prices decrease by 4.4% and 3.7% year over year, respectively.
THESE 10 MARKETS MAY SEE THE BIGGEST HOMEBUYING SURGE AS MORTGAGE RATES FALL
Overall, about 15 metros reported a decline in median home-sale prices during the four weeks ending January 11.
A view of the Philadelphia skyline. (Jumping Rocks/Universal Images Group via Getty Images)
Despite a decrease in home buying and selling activity—with pending home sales down 5% year over year and new listings declining by 4.7%—Redfin economists anticipate a potential uptick in pending sales due to the recent drop in mortgage rates.
The average rate for a 30-year fixed mortgage has fallen to 6.06%, marking the lowest level since September 2022, as reported by Freddie Mac on Thursday.
Here are the top five metros with the biggest increases:
1. Detroit, Michigan – 6.5%
2. Philadelphia, Pennsylvania – 5.8%
3. Chicago, Illinois – 5.6%
4. Warren, Michigan – 5.6%
The Wrigley building in Chicago, Illinois. (Al Drago/Bloomberg via Getty Images)
THE MARKETS WHERE HOMEBUYERS MAY FINALLY GET SOME RELIEF IN 2026, REALTOR.COM SAYS
Here are the top five metros with the biggest decreases:
1. Dallas, Texas – -4.4%
2. San Jose, California – -3.7%
3. Jacksonville, Florida – -2.7%
4. Oakland, California – -2.4%
5. Portland, Oregon – -1.8%
American Real Estate Association co-founder Jason Haber unpacks the state of the housing market and assesses Redfin’s announcement of a ‘great housing reset’ coming in 2026 on ‘The Claman Countdown.’
The median U.S. monthly housing payment has recently dropped to its lowest level in nearly two years, although it could have decreased further if not for the ongoing rise in sale prices, according to a recent report from Redfin.
During the four weeks ending January 11, the monthly housing payment fell to $2,413. Despite this decline, the national median home-sale price increased by 1% year over year. This is a notable decrease from the 4% to 5% growth observed at the beginning of 2025, as highlighted in the brokerage’s Thursday report.
In some regions, however, prices surged at a much higher rate. For example, in Cincinnati, Ohio, the median home-sale price rose by an impressive 8.4% year over year—more than eight times the national increase.
MORTGAGE RATES FALL TO LOWEST LEVEL SINCE 2022
Detroit and Philadelphia also saw significant increases, with median home-sale prices rising by 6.5% and 5.8% year over year, respectively.
The median home-sale price rose 6.5% on an annual basis. (Roberto Machado Noa/LightRocket via Getty Images)
The metros that experienced the largest declines were primarily located in the South and on the West Coast. Notably, Dallas and San Jose, California, saw median home-sale prices decrease by 4.4% and 3.7% year over year, respectively.
THESE 10 MARKETS MAY SEE THE BIGGEST HOMEBUYING SURGE AS MORTGAGE RATES FALL
Overall, about 15 metros reported a decline in median home-sale prices during the four weeks ending January 11.
A view of the Philadelphia skyline. (Jumping Rocks/Universal Images Group via Getty Images)
Despite a decrease in home buying and selling activity—with pending home sales down 5% year over year and new listings declining by 4.7%—Redfin economists anticipate a potential uptick in pending sales due to the recent drop in mortgage rates.
The average rate for a 30-year fixed mortgage has fallen to 6.06%, marking the lowest level since September 2022, as reported by Freddie Mac on Thursday.
Here are the top five metros with the biggest increases:
1. Detroit, Michigan – 6.5%
2. Philadelphia, Pennsylvania – 5.8%
3. Chicago, Illinois – 5.6%
4. Warren, Michigan – 5.6%
The Wrigley building in Chicago, Illinois. (Al Drago/Bloomberg via Getty Images)
THE MARKETS WHERE HOMEBUYERS MAY FINALLY GET SOME RELIEF IN 2026, REALTOR.COM SAYS
Here are the top five metros with the biggest decreases:
1. Dallas, Texas – -4.4%
2. San Jose, California – -3.7%
3. Jacksonville, Florida – -2.7%
4. Oakland, California – -2.4%
5. Portland, Oregon – -1.8%
