U.S. Housing Market Stalls as Buyers Hesitate Despite Lower Mortgage Rates

The U.S. housing market is showing renewed signs of hesitation as buyers take a cautious approach despite slightly lower mortgage rates and modestly improved affordability. According to a new Redfin report, pending home sales rose just 0.7% year-over-year during the four weeks ending November 2, 2025, marking the smallest increase in four months.

Homes are also taking longer to sell, with the average property spending 48 days on the market the longest median time for October since 2019. The slowdown underscores a market caught between moderating borrowing costs and continued uncertainty about economic stability, inflation, and the Federal Reserve’s next move.

“We’re seeing a market where buyers aren’t pulling out completely they’re just more selective and deliberate,” said Rebecca Love, a Redfin Premier agent in Washington, D.C. “Today’s buyers want value and security. They’re worried about interest rates, job stability, and the economy, so they’re waiting for the perfect home rather than settling quickly.”

Buyers Hesitant Even as Payments Drop

While mortgage rates have edged down to 6.17%, their lowest level in over a year, it hasn’t been enough to reignite strong demand. The median monthly housing payment fell 2.1% year-over-year to $2,508, offering some relief for buyers. Yet many are staying on the sidelines as home prices continue to climb, recording their largest six-month increase.

Redfin analysts say the market remains constrained by affordability pressures and uncertainty about the Federal Reserve’s policy path. After signaling that a December rate cut is not guaranteed, bond markets responded with higher yields, causing mortgage rates to tick upward again after several weeks of improvement.

“Falling rates usually give buyers a confidence boost, but this time, the optimism is muted,” noted Redfin’s housing economist. “Buyers are still cautious because they’ve been burned before by short-lived rate dips and rising prices.”

Regional Winners and Losers: Pending Sales Trends

Certain metros, particularly in Florida and California, are still seeing robust growth in pending sales, while others continue to weaken.

Top Five Metros with the Biggest YoY Increases in Pending Sales:

1. West Palm Beach, FL – +22.8%
2. Tampa, FL – +16.2%
3. Fort Lauderdale, FL – +12.2%
4. San Francisco, CA – +11.3%
5. Orlando, FL – +10.2%

Top Five Metros with the Biggest YoY Decreases in Pending Sales:

1. Seattle, WA – -16.8%
2. San Jose, CA – -11.1%
3. San Antonio, TX – -9.3%
4. Minneapolis, MN – -9.1%
5. Denver, CO – -8.3%

Florida continues to dominate the leaderboard for market momentum, buoyed by strong population inflows, lower taxes, and consistent investor activity. Meanwhile, high-cost western metros like Seattle and San Jose are cooling sharply amid affordability challenges and slower job growth.

Inventory and Listings Show Early Signs of Stability

While buyer activity remains sluggish, new listings are starting to recover, suggesting that more sellers are testing the market again. New listings increased 4% year-over-year, continuing a trend that began in late summer.

Overall active listings rose 6.7% YoY, bringing months of supply to 4.7 months, up half a point from last year a signal that the market is gradually normalizing after years of tight inventory.

However, homes are taking longer to move and fewer are selling above list price. The share of homes selling above asking dropped from 26% to 22.8%, while the average sale-to-list ratio edged down to 98.3%, indicating slightly more negotiating power for buyers.

U.S. Housing Market Snapshot — Four Weeks Ending November 2, 2025

Metric	Value	YoY Change
Median Sale Price	$392,375	+2%
Median Asking Price	$395,500	+2.9%
Median Monthly Mortgage Payment (6.17%)	$2,508	-2.1%
Pending Sales	76,431	+0.7%
New Listings	83,408	+4%
Active Listings	1,198,934	+6.7%
Months of Supply	4.7	+0.5 pts
Homes Off Market in Two Weeks	29%	Down from 31%
Median Days on Market	48	+6 days
Share of Homes Sold Above List Price	22.8%	Down from 26%
Average Sale-to-List Ratio	98.3%	Down from 98.7%

Redfin’s national data covers 400+ U.S. metros. Figures are subject to revision.

Prices Continue to Rise — But Gains Are Uneven

While national median prices are up modestly, some regional markets are outperforming significantly.

Top Five Metros with the Biggest YoY Increases in Median Sale Price:

1. Detroit, MI – +11.6%
2. Newark, NJ – +9.8%
3. Cleveland, OH – +9.6%
4. Milwaukee, WI – +7.4%
5. Philadelphia, PA – +6.9%

Rust Belt metros such as Detroit and Cleveland are seeing strong price appreciation, reflecting a rebound in affordability-driven migration and investor interest.

In contrast, several Sun Belt and West Coast markets are seeing mild price corrections.

Top Five Metros with the Biggest YoY Decreases in Median Sale Price:

1. Jacksonville, FL – -3.5%
2. Dallas, TX – -3.3%
3. San Antonio, TX – -2.2%
4. Riverside, CA – -2.1%
5. San Diego, CA – -2%

Where New Listings Are Rising the Fastest

Inventory expansion continues to be strongest in Florida, Arizona, and Pennsylvania, where sellers are capitalizing on steady buyer interest.

Top Five Metros with the Biggest YoY Increases in New Listings:

1. Tampa, FL – +16.4%
2. Phoenix, AZ – +14.1%
3. Montgomery County, PA – +13%
4. West Palm Beach, FL – +12%
5. Philadelphia, PA – +9.7%

Meanwhile, key metros like Sacramento, Dallas, and Denver are seeing notable pullbacks in new listings, suggesting some homeowners remain hesitant to sell while mortgage rates remain high.

Top Five Metros with the Biggest YoY Decreases in New Listings:

1. Sacramento, CA – -8.8%
2. Dallas, TX – -8.6%
3. Denver, CO – -8.5%
4. San Antonio, TX – -7.6%
5. Anaheim, CA – -7.5%

Outlook: Waiting Game Continues

Experts expect the housing market to remain slow but steady through the end of the year as buyers wait for more clarity on the Federal Reserve’s next policy moves and sellers adjust pricing expectations.

If mortgage rates stabilize near 6%, modest gains in affordability could help jumpstart demand early in 2026. But until then, analysts expect subdued sales volumes, longer listing times, and a market increasingly defined by buyer caution and selective purchasing behavior.

“Buyers aren’t gone they’re just patient,” said Love. “Many are waiting for the right combination of price, location, and confidence before taking the plunge. The next few months will be critical for setting the tone heading into 2026.” For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.