“Most house hunters aren’t flat-out stopping their search; instead, they’re being picky and looking for the perfect home,” Rebecca Love, a Redfin Premier agent in Washington, D.C., said.
“Buyers are ultra-cautious with their funds because they’re worried about interest rates, the economy, and potentially losing their job. If they’re going to spend money, they want to check every box—and at the same time, they want a good deal. That means searches are taking longer than usual.”
Mortgage-purchase applications fell 1% from the previous week, even as they remained 26% higher year over year, according to the Mortgage Bankers Association.
The Redfin Homebuyer Demand Index climbed 3% over the month but was still down 9% compared to last year. Meanwhile, Google searches for “homes for sale” jumped 20% month over month, suggesting interest remains, but buyers are hesitant to commit.
United States mortgage application activity slipped for the week ending October 31, with the Mortgage Bankers Association (MBA) reporting a 1.9% decrease in its Market Composite Index on a seasonally adjusted basis.https://t.co/iHiWZoR93w
— Mortgage Professional America Magazine (@MPAMagazineUS) November 5, 2025
Sellers hold steady as prices inch up
On the supply side, new listings rose 4% year over year, while active listings increased by 6.7%. The median sale price climbed 2% to $392,375, marking the largest six-month gain, and the median asking price hit $395,500, up 2.9%. However, only 22.8% of homes sold above list price, down from 26% a year ago.