For the first time since 2020, the median U.S. monthly mortgage payment has declined. During the four weeks ending August 18, the $2,587 figure reached its lowest level since February and was down 0.1% from a year ago, according to Redfin.

The downward trend is likely due to falling mortgage rates, which are sitting at a 15-month low of just below 6.5%, down from a peak of 7.2% in May. Although home prices remain near record highs, up 3.6% year-over-year, house hunters are showing renewed interest in the market as rates stabilize.

Touring activity is up 9% from the start of the year, as of Aug. 19, and Google searches for 'home for sale' are up 8% from a month earlier, said Redfin. An uptick in home tours hasn't yet translated to more sales, however. Pending home sales are down 5.3% year-over-year, the biggest decline in nine months with the exception of the four weeks ending August 4, and mortgage-purchase applications are down 8%. The firm noted pending sales are a lagging indicator, and they may improve as home tours pick up.