Pending U.
S. home sales experienced a roughly 1% decline from a year earlier during the four weeks ending September 21, according to a new report from Redfin, the real estate brokerage within Rocket Companies. This marks the first year-over-year decrease in nearly three months, occurring despite the weekly average mortgage rate falling to 6.26%, its lowest level in nearly a year and a significant drop from approximately 6.9% at the start of summer.
The decline in mortgage rates—representing the ninth consecutive week of decreases—has not yet translated into a substantial increase in homebuyer demand. While mortgage applications for refinancing saw a 58% week-over-week jump during the second week of September, mortgage-purchase applications rose by only 3%.
Redfin identifies several factors contributing to the subdued homebuying activity. Stubbornly high home prices remain a key impediment, with the median U.
S. home-sale price increasing by 2.2% year-over-year, the largest such increase in nearly six months. This trend keeps monthly housing payments elevated even with lower mortgage rates. Redfin agents report that many prospective buyers are delaying their purchases, awaiting rates to fall below 6%.
Additionally, a lack of new inventory continues to challenge the market. New listings of homes for sale have been essentially flat year-over-year for two months, and the total number of homes for sale is up 8.6%, representing the smallest increase since the beginning of 2024. As sellers react to current market conditions, fewer new homes are available, limiting options for house hunters.
Economic uncertainty also plays a role, with Redfin agents noting that some buyers are hesitant due to concerns about potential layoffs, stock market volatility, trade tariffs, and the possibility of a recession. In some regions, buyers who are proceeding with purchases are increasingly making offers with contingencies, indicating a willingness to withdraw if their terms are not met during inspection periods.
According to Mortgage News Daily, the daily average 30-year fixed mortgage rate stood at 6.37% on September 24. Freddie Mac data indicated the weekly average 30-year fixed mortgage rate was 6.26% for the week ending September 18. The Mortgage Bankers Association reported that mortgage-purchase applications were essentially flat, up 0.3% from a week earlier, but up 18% year-over-year as of the week ending September 19.
Key housing market data for the four weeks ending September 21, 2025, showed the median sale price at $390,750, a 2.2% year-over-year increase. The median monthly mortgage payment was $2,579 at a 6.26% mortgage rate, up 4.1% year-over-year. Active listings increased by 8.6%, reaching 1,200,443. Months of supply increased by 0.4 points to 4.4, with 4 to 5 months generally considered a balanced market.
Metro-level data indicated varied performances. Milwaukee saw the largest year-over-year increase in median sale price at 11.3%, followed by Cleveland (9.3%) and Detroit (7.5%). Conversely, San Francisco experienced a 6.3% decrease. In pending sales, San Francisco saw a 12.3% increase, while Houston registered a 14.4% decrease. New listings increased significantly in Baltimore (13.1%) and Pittsburgh (12.5%), while declining notably in Orlando, FL (-15.9%) and Tampa, FL (-13.3%).
Redfin, a technology-driven real estate company and part of Rocket Companies (NYSE: RKT), operates one of the country’s most-visited real estate brokerage websites. The company aims to create an integrated homeownership platform to enhance affordability and accessibility.
