US Home Prices Fall for a Third Straight Week as Mortgage Rates Ease

US home prices fall for a third straight week: home-sale prices fell year over year, according to a new report from Redfin, giving buyers a small measure of relief after three years of increases. The median sale price was $388,604 in the four weeks ending 1 November 2026, down 0.4 percent from a year earlier, while mortgage rates fell for a third consecutive week to 7.18 percent. Yet the market remains frozen: pending sales hit their lowest level in Redfin’s records, and sellers are still asking more than buyers are paying.

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FAKTA

• The median US home-sale price was $388,604 in the four weeks ending 1 November 2026, down 0.4 percent year over year, the third straight weekly decline after three years of increases.
• The median asking price rose 2 percent year over year to $401,860, while the median monthly mortgage payment eased to $2,777, a five-week low.
• Pending sales fell to 275,484, down 16.4 percent year over year and the lowest level in Redfin records dating back to 2021.
• New listings fell to 346,795, the lowest level since January, and homes sat a median of 50 days on the market.
• The average 30-year fixed mortgage rate fell to 7.18 percent in the week ending 5 November, the third consecutive weekly decline, according to Freddie Mac.
• Zillow estimates pending sales fell 16.8 percent in October compared with a year ago, the biggest annual dip since August 2023.

US Home Prices Fall as Asking Prices Rise

Redfin’s housing market update, released on 5 November, shows a market split in two. On the one hand, the median sale price has now declined for three weeks in a row, the first sustained fall after three years of increases. On the other, the median asking price rose 2 percent year over year to $401,860, leaving a gap of more than $13,000 between what sellers ask and what homes actually sell for. The median monthly mortgage payment was $2,777 at a 7.24 percent mortgage rate, down from a peak of $2,811 in early October and the lowest level in five weeks.

Redfin said costs declined because mortgage rates and sale prices are slowly coming down. The Freddie Mac survey released the same day put the 30-year fixed rate at 7.18 percent, down 22 basis points from a month ago. For a buyer with a fixed monthly budget, that drop restores roughly $11,000 of home price at a 20 percent down payment. Even so, the rate remains far above the 6.22 percent recorded a year earlier.

New listings fell to their lowest level since January as sellers held back from the market.

Both Sides Step Back

The most striking numbers in the report are about activity, not prices. Pending sales fell to 275,484, down 16.4 percent year over year and the lowest level in Redfin’s records dating back to 2021. New listings fell to 346,795, the lowest since January. Homes sat a median of 50 days on the market, 21.2 percent of listings had price drops, and the average sale-to-list ratio was 98.3 percent.

Zillow’s figures tell the same story: pending sales fell 16.8 percent in October compared with a year ago, the biggest annual dip since August 2023 and the slowest pace recorded for October since 2018. Overall mortgage applications fell 1.2 percent for the week ending 30 October, according to the Mortgage Bankers Association. Inventory continues to rise, which is unusual for this time of year, but buyers are not biting.

Buying Still Costs More Than Renting

For the typical American home, buying still costs more than renting. Zillow put the typical home value at $366,157 in September 2026, up 1.2 percent year over year, with a typical rent of $1,932 a month. At the Freddie Mac rate of 7.18 percent, the typical home costs about $1,984 a month to buy in principal and interest with 20 percent down, against $1,932 to rent, before property taxes, insurance and upkeep. Redfin’s affordability reading put the income needed to afford the typical American home at $109,796, against a median household income of $87,599.

What Comes Next

Economists say home prices are now either flat or only slightly different from a year ago, and the direction of mortgage rates will decide what happens next. Rates have fallen for three weeks in a row, but they remain much higher than a year ago, and forthcoming jobs data could slow recent progress. With pending sales at record lows and sellers still asking above selling prices, the market looks set to stay quiet through the winter unless rates fall further.

US Housing at a Glance

Conclusion

Three weeks of falling prices and three weeks of falling mortgage rates add up to the first real relief for American homebuyers in years, but the market is still barely moving. Until sellers accept lower prices or rates fall much further, buyers and sellers look set to keep waiting each other out.

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Frequently Asked Questions

How much did US home prices fall?

The median home-sale price was $388,604 in the four weeks ending 1 November 2026, down 0.4 percent year over year, according to Redfin. It was the third straight week of declines after three years of increases.

What is the average mortgage rate now?

The average 30-year fixed mortgage rate fell to 7.18 percent in the week ending 5 November 2026, according to Freddie Mac. It was the third consecutive weekly decline, but still well above the 6.22 percent of a year earlier.

Why are pending sales so low?

Pending sales fell to 275,484, down 16.4 percent year over year, the lowest level in Redfin’s records dating back to 2021. High mortgage rates and a gap between asking prices and selling prices are keeping buyers on the sidelines.

Are sellers lowering their prices?

Some are: 21.2 percent of listings had price drops, and homes sold for an average of 98.3 percent of their list price. But the median asking price still rose 2 percent to $401,860.

How much is the typical monthly payment?

Redfin put the median monthly mortgage payment at $2,777 at a 7.24 percent rate, a five-week low and down from a peak of $2,811 in early October.

Is buying cheaper than renting now?

Not yet. Zillow data shows the typical home costs about $1,984 a month to buy in principal and interest at 7.18 percent, against $1,932 a month to rent, before taxes, insurance and upkeep.