Monthly Housing Costs Start the Year Down 5%, the Biggest Decline in Over a Year

House hunters are getting some relief as mortgage rates dip.

The median U.S. monthly housing payment dipped to $2,413 during the four weeks ending January 11, near the lowest level in two years and down 5.5% from a year earlier. That’s the biggest decline since October 2024. 

Housing payments are coming down because mortgage rates are falling. The daily average mortgage rate dropped to 5.99% last week, its lowest level in nearly three years, after President Trump ordered federal agencies to buy $200 billion in mortgage bonds (the daily average rate has since ticked up to 6.07%). To look at the impact of declining mortgage rates another way, homebuyers’ purchasing power has increased by roughly $14,000 in the last month and $30,000 in the last six months. 

Monthly housing…