Even though mortgage rates are sitting near their lowest level in a year, house hunters are spooked by stubbornly high home prices and jitters about a possible recession and the government shutdown

New listings of U.S. homes for sale rose 4.1% year over year during the four weeks ending October 12, the biggest increase in over four months, according to a new report from Redfin, the real estate brokerage powered by Rocket.

More sellers are entering the market because they’re hoping lower mortgage rates and a small improvement in affordability will attract buyers. The weekly average mortgage rate is 6.3%, just shy of its lowest level in a year.

Buyers Stay in the Shadows, Spooked By Financial Jitters and Rising Prices

Pending home sales are moving in the opposite direction, falling 1.2% year over year, the biggest decline in over five months. Homes are also taking a long time to sell, with the typical home sitting on the market for 48 days before going under contract, a week longer than last year.

Many buyers are still sitting on the sidelines due to stubbornly high sale prices and economic uncertainty. The median home-sale price is up 1.9% year over year, the second-biggest increase in six months, keeping payments elevated even though they’re down from their all-time high. Pair that with widespread financial unease amid the government shutdown, concerns about tariffs and recession jitters, and many Americans are opting against making the biggest purchase of their life.

“Buyers are hesitant because of concerns about job security and high mortgage rates,” said Jo Chavez, a Redfin Premier agent in Kansas City, MO. “Even though rates have come down from their peak, a lot of people are waiting for sub-6% rates before they buy. And in Kansas City, where there are tens of thousands of government jobs, furloughs and potential layoffs are hitting hard. One client who works for the federal government started house hunting two years ago, then paused when he was furloughed last year. He had just started looking again, but now he’s not sure if he’s going to buy because his job is uncertain; he may be relocated out of state.”

Washington, D.C. Pending Sales Are Falling More Than They Are Nationwide

In the Washington, D.C. metro area, home to hundreds of thousands of federal employees, homebuying demand is taking a hit as workers worry about their jobs. The U.S. government partially shut down on October 1 after lawmakers were unable to agree on a budget, leading to pay suspension for a portion of federal workers.

Though federal workers are spread throughout the country, the lion’s share are in D.C. and surrounding parts of Maryland and Virginia. Pending home sales in D.C. are down 6.7% year over year, and the typical home is taking 43 days to go under contract—nine days longer than last year.

On the flip side, new listings are up 9.8% year over year, the third-biggest increase of the 50 most populous U.S. metros, as some locals try to offload their homes.

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

Leading indicators

Key housing-market data

To view the full report, including charts, please visit:

https://www.redfin.com/news/housing-market-update-new-listings-rise-pending-sales-fall-october-2025

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

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