Nearly 1 in 5 homes slashed prices last month, despite falling mortgage rates

Homeowners are falling behind on mortgage payments in these states

A new study reveals that more people are starting to fall behind on their mortgage, as costs that come with buying a home, such as taxes and insurance, rise faster than many people can keep up with. Melissa Cohn, Regional Vice President of William Raveis Mortgage, joined LiveNOW from FOX to discuss.

Nearly 20% of home listings reduced their prices last month in what experts say is another sign that the housing market continues to slow. 

According to the September housing trends report from Realtor.com, buyers still have the upper hand in the current market, especially as we approach the "best time to buy," but that power depends on where you live and how much you’re willing to pay for a home.

September 2025 housing trends

What they're saying:

"What we’ve uncovered is that price reductions are more common at the lower end of the market, while higher-priced sellers are more likely to hold firm," Jake Krimmel, senior economist at Realtor.com, told FOX Business. "That helps explain why median prices nationally and in many [metropolitan areas] look steady even as buyers at more affordable price points are seeing more room to negotiate."

By the numbers:

Buyers had more homes to choose from in September: Active listings are up 17% over last year. Nationwide, homes for sale topped 1 million for the fifth consecutive month.

A "New Low Price" sign in front of a home in Crockett, California, US, on Wednesday, Sept. 24, 2025. Photographer: David Paul Morris/Bloomberg via Getty Images

Homes spent longer on the market for the 18th straight month, with the typical home taking 62 days to sell. They’re spending even longer on the market in Florida and the West, particularly Las Vegas. 

RELATED: Mortgage rates are decreasing the most in these states, data shows

The national median list price remained steady at $425,000, but dropped 3.6% in the West. The number of actively listed homes is up 17% compared to the same time last year, marking the 23rd consecutive month of year-on-year inventory gains. That growth, however, has slowed over the past four months. 

Of the 20% of sellers who slashed their prices last month, most were in the $350,000-$500,000 range. 

September 2025 mortgage rates

Big picture view:

The average rate on a 30-year U.S. mortgage ticked up for the second straight week, but they’re still at their lowest in months. 

RELATED: Potential homebuyers are giving up, survey finds

The average long-term mortgage rate rose this week to 6.34% from 6.3% last week, mortgage buyer Freddie Mac said Thursday (Oct. 2). A year ago, the rate averaged 6.12%.

Best week to buy a house

Timeline:

According to Realtor.com, the best week to buy a house – Oct. 12 - Oct. 18 – is approaching. 

RELATED: The best week to buy a home in 2025 is coming up soon

Buyers may see up to 32.6% more active listings than at the start of the year and are poised to save over $15,000 on average.