Home sales stayed sluggish even as mortgage rates dipped to a yearly low
The United States housing market continued to move at a crawl, with pending home sales rising just 0.7% year over year in the four weeks ending November 2—a pace not seen since 2019.
Homes lingered on the market for a median of 48 days, the slowest October since before the pandemic, according to national data from Redfin and Freddie Mac.
Buyers remain cautious despite lower rates
Mortgage rates fell to a weekly average of 6.17%, the lowest in over a year. As a result, the typical monthly mortgage payment dropped to $2,508, down 2.1% from last year and marking the biggest decline in almost twelve months. Still, these lower rates have not led to a jump in homebuying.
“Most house hunters aren’t flat-out stopping their search; instead, they’re being picky and looking for the perfect home,” Rebecca Love, a Redfin Premier agent in Washington, D.C., said.
“Buyers are ultra-cautious with their funds because they’re worried about interest rates, the economy, and potentially losing their job. If they’re going to spend money, they want to check every box—and at the same time, they want a good deal. That means searches are taking longer than usual.”
Mortgage-purchase applications fell 1% from the previous week, even as they remained 26% higher year over year, according to the Mortgage Bankers Association.
The Redfin Homebuyer Demand Index climbed 3% over the month but was still down 9% compared to last year. Meanwhile, Google searches for “homes for sale” jumped 20% month over month, suggesting interest remains, but buyers are hesitant to commit.
United States mortgage application activity slipped for the week ending October 31, with the Mortgage Bankers Association (MBA) reporting a 1.9% decrease in its Market Composite Index on a seasonally adjusted basis.https://t.co/iHiWZoR93w
— Mortgage Professional America Magazine (@MPAMagazineUS) November 5, 2025
Sellers hold steady as prices inch up
On the supply side, new listings rose 4% year over year, while active listings increased by 6.7%. The median sale price climbed 2% to $392,375, marking the largest six-month gain, and the median asking price hit $395,500, up 2.9%. However, only 22.8% of homes sold above list price, down from 26% a year ago.
Some regional markets bucked the trend. Detroit, Newark, and Cleveland posted double-digit price gains, while Jacksonville and Dallas saw declines. Florida metros like West Palm Beach and Tampa led in pending sales growth, but Seattle and San Jose experienced sharp drops.
Market uncertainty tempers optimism
Despite improved affordability, economic uncertainty and the Federal Reserve’s signals that a December rate cut is unlikely have kept many buyers on the sidelines.
The months of supply edged up to 4.7, signaling a more balanced market, but the share of homes going off-market within two weeks slipped to 29%.
Even as mortgage rates ease, buyers are in no rush—scrutinizing every detail and waiting for the right deal. As the market recalibrates, both buyers and sellers are adjusting expectations, with activity unlikely to rebound sharply until economic confidence returns.
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