The typical U.S. homebuyer’s monthly housing payment was $2,671 during the four weeks ending July 21, the lowest level in four months and down $166 from the record high set at the end of April. Housing payments are falling because mortgage rates are falling: The weekly average mortgage rate has declined to 6.77%, its lowest level since March, as inflation cools.  

Buyers also have more homes to choose from: New listings are up 6.1% year over year, and more listings are growing stale, giving house hunters the opportunity to negotiate. But even though housing payments are declining and inventory is improving, homebuyers remain hesitant. Pending home sales are down 5.7% year over year, the biggest decline in nearly nine months, and mortgage-purchase applications are down 15% (purchase applications are down 4% week over week). 

Many would-be buyers are still waiting on the sidelines largely because even though mortgage rates are coming down a bit, home-sale prices are just shy of the record high hit in early July. Additionally, Redfin agents say some house hunters are waiting until after the upcoming presidential election to buy because they don’t want to make a large purchase in the midst of political and economic uncertainty.  

"I’m working with several buyers who are waiting for the election before they make a move,” said Matthew Purdy, a Redfin Premier agent in northern Colorado. "Some of them say they’ll only buy a home if their candidate wins. Others are waiting because they feel the economy and housing market are shaky, and hope it will improve after the election. I am working with a few foreign buyers who are wary about investing any more money in U.S. real estate before they see who takes office.” 

For Redfin economists’ takes on the housing market, please visit Redfin’s "From Our Economists” page.