New data from Redfin indicates that new listings of U.S. homes for sale rose about 1% year-over-year during the four weeks ending January 25, marking the first increase in more than two months. The uptick comes as lower mortgage rates and declining housing costs appear to be drawing more buyers and encouraging hesitant sellers back into the market.
According to Redfin’s latest national housing report, pending home sales also showed signs of stabilization: they fell 1.6% year-over-year, the smallest decline in nearly two months, and mortgage-purchase applications hovered near their highest level in three years. The median monthly housing payment dropped 6.6% compared with a year ago, reflecting improved affordability for prospective buyers.
“Buyers are more serious than they were a few months ago; they’re looking at every listing and meticulously comparing the pros and cons of each one,” said Connie Durnal, a Redfin Premier agent in Dallas. “Buyers are able to take their time and be picky because there are a lot of listings; bidding wars are few and far between. Sellers who need to move know they need to be realistic; some are willing to negotiate prices down and make concessions like repairs, especially because they’re competing with builders of new construction.”
Lower borrowing costs are a significant factor behind these shifts.
Freddie Mac reports the 30-year fixed-rate mortgage (FRM) averaged 6.09% as of January 22, 2026, up from the previous week when it averaged 6.06%. However, the FRM is nearly a full percentage point lower year-over-year, as it averaged 6.96% just one year ago. This has helped ease the so-called mortgage-rate “lock-in effect” that had previously discouraged homeowners from selling and moving.
Despite the modest increase in listings, homes are still taking longer to sell. The typical home that went under contract in January spent 63 days on the market — a week longer than a year earlier and the longest sales pace in at least six years. This reflects continued buyer caution and a generally slow sales environment.
Redfin reports that other housing metrics showed modest changes, with active listings edging upward, supply remaining above balanced levels, and the share of homes selling above list prices continuing to decline.
