President Donald Trump recently gave the order to purchase $200 billion in mortgage bonds, which made an impact on the market.
The median U.S. monthly housing payment declined to $2,413 during the four weeks ending Jan. 11, the biggest decline since October 2024, and down 5.5 percent on an annual basis, according to a Jan. 15 report by real estate brokerage Redfin.
“Housing payments are coming down because mortgage rates are falling,” Redfin stated. The 30-year fixed-rate mortgage averaged 6.06 percent as of Jan. 15, hitting its lowest level in over three years, according to Freddie Mac. The mortgage rate has registered a nearly 14 percent annual drop from 7.04 percent on Jan. 16, 2025.
The recent decline in rates has been attributed to President Donald Trump’s decision to order federal agencies to purchase $200 billion in mortgage bonds in order to lower housing costs.
There’s an inverse relationship between mortgage bonds and interest rates. When major buyers make purchases of large volumes of mortgage bonds, their yields fall, and when yields fall, mortgage lenders offer lower rates to borrowers.
However, home sale prices are on the uptick. The monthly housing payments would be falling even further were it not for still-rising sale prices, Redfin said.
According to the brokerage, prices are up 1 percent annually, but the increase is not significant considering there was a 4 percent to 5 percent uptick at the beginning of 2025.
Based on Redfin’s national metrics data collected from over 400 U.S. metro areas, the median home sale price is $380,606, as of Jan. 11, with an asking price of $380,825.
“Right now, homes are sitting on the market for several months, and a lot of sellers are cutting their asking price,” said Portland-based Redfin agent Meme Loggins. “Buyers know that’s unlikely to last long, especially with rates coming down. Prospective buyers know competition will probably tick up by springtime, so they’re getting serious about house hunting and getting a deal while they can.”
There are over 996,087 active listings in the marketplace with 5.1 months of supply. The median days on market for a listing is 59, with one in five homes sold above the list price.
