Residential Real Estate News
U.S. Monthly Housing Payments Hit Record High in 2025
According to Redfin, a national property brokerage, the typical U.S. homebuyer's monthly housing payment reached a record high of $2,807 in March 2025, marking a 5.3% increase from the previous year.
The surge in housing costs stems from two key factors: rising sale prices and elevated mortgage rates. The median home-sale price has climbed 3% year over year, while the average weekly mortgage rate sits at 6.67%--more than double the lows seen during the pandemic. However, rates have eased slightly from January's eight-month high of 7.04%, preventing payments from being even higher.
Soaring costs are slowing home sales, with pending transactions down 4.6% from a year ago, mirroring trends observed in recent months. Yet, as spring unfolds, more buyers are entering the market. Mortgage-purchase applications have reached their highest level since early February on a seasonally adjusted basis. ShowingTime data indicates an uptick in home tours compared to last year, and Google searches for "homes for sale" are at their peak since August.
Sellers, however, are outpacing buyers. New home listings have risen 7.5% year over year--the largest increase so far in 2025. If this trend continues alongside falling mortgage rates, pending sales could gain momentum in the coming months.
Despite high costs, some buyers are finding opportunities to negotiate.
"Buyers are hesitant due to economic uncertainty and potential layoffs, and many are waiting to see if mortgage rates drop later this year. But with others also holding back, some buyers are securing homes below asking price," said Kimberly Freutel, a Redfin Premier agent in Sammamish, WA. "If you find a home you love and plan to stay for at least four or five years, consider making a reasonable offer, even if it's slightly below list price. Don't assume a bidding war will drive it out of reach--the seller might be willing to accept."
