October Market Report: Why It’s All About the Monthly Payment

Thanks in part to last month’s mortgage rate dip, seasonality didn’t hit as hard in September. New listings, active inventory, and newly pending listings all slipped month over month (MoM) but remained higher than a year ago — a sign that both sellers and buyers stayed more engaged than in a typical early fall.

Homes went pending in 27 days, unchanged from August, six days longer than a year ago, and two days faster than pre-pandemic. Overall, the national market is moving at a steady, balanced pace rather than cooling sharply.

Buyers are focused on the monthly payment

The average monthly payment in September is $1,812

• -2.4 percentage points MoM
• +1.9 percentage points YoY

Nationally, the typical monthly payment on a new purchase — assuming 20% down — was $1,812, down slightly from August, but up slightly from last year (and roughly double since pre‑pandemic). The market is still expensive, but many buyers were able to lock in lower costs last month when mortgage rates dropped.

“With how much homes have appreciated over the last several years, many buyers are shopping on the edge of what they can afford,” says Zillow Senior Economist Kara Ng. “When borrowing costs dip, they might discover the same monthly payment unlocks another bedroom. That can mean the difference between finding a home that’s a fit for now versus for years.”

Takeaway: Partners can find success framing conversations in terms that focus on the monthly payment, helping clients explore how down payment amounts, buydowns, credits, and offer prices would affect the monthly cost. Using Zillow Home Loans’ BuyAbility℠ tool can help them get real-time search updates based on their financial situation.

Price cuts are up, but they're not the only tool sellers have

26.2% of listings had a price cut in September

• +0.4 percentage points MoM
• +1.3 percentage points YoY

With housing stock up since last year and many metros settling into a neutral market, sellers can still win when their home is in good selling condition and marketed well. After marketing, a comprehensive and flexible buyer financing strategy can work for the same reason stated in the entry above: Buyers tend to stick to a monthly payment they’ve become comfortable with. 

“When buyers fixate on the monthly payment, sellers don’t always need to chase price cuts,” Ng says. “Strategic incentives like rate buydowns or closing credits can reframe value, helping homes stand out without resetting list prices. It’s a tactic we’ve seen work with home builders and sellers in cooler markets”

Takeaway: Some agents use a price cut as their third lever, after presentation and financing strategy. One effective tactic is to create an incentives menu that pairs price adjustments with financing options. This makes it easy for buyers to see how each choice changes not just the price but the monthly payment as well.

Check how your area is trending with the Zillow Market Heat Index.