High Housing Costs Are Keeping Homebuyers at Bay–But Price Relief Is in Sight
By: Dana Anderson | Published: 2025-05-29 12:30:00 | Source: www.redfin.com
The median monthly U.S. mortgage payment is just $25 shy of its record high, sidelining would-be buyers. But the tide is turning for buyers: Redfin economists expect home prices to decline by the end of the year, and a surplus of listings is motivating sellers to negotiate.
The median monthly mortgage payment nationwide was $2,860 during the four weeks ending May 25, up 3.6% year over year and just $25 shy of the all-time high. Housing payments are high for two reasons: The weekly average mortgage rate is 6.86%, the highest level in three months, and the median U.S. home-sale price is up 1.9% year over year.
High costs, along with widespread economic uncertainty, are keeping would-be homebuyers at bay. Pending home sales are down 1.7% from a year ago, and Redfin’s Homebuyer…
