The median U.S. monthly housing payment has fallen to its lowest level since January during the four weeks that ended Sept. 1 thanks to falling mortgage rates. The average payment was $2,534, down nearly $300 from April's all-time high as mortgage rates reached their lowest level in 18 months, according to a Redfin report.

Dropping payments are not spurring home sales, however. Pending home sales dropped 8.4% year-over-year, the biggest decline in nearly a year, according to Redfin. Many potential homebuyers are still waiting for mortgage rates to fall further or for additional clarity on NAR rules that could impact agent fees. Some are even holding off on buying until after the presidential election, the report said.

Redfin said mortgage rates may not come down much more as the markets have already priced in interest-rate cuts from the Fed expected this month and through 2025. If rate cuts are smaller and slower than expected, mortgage rates are likely to rise. Faster rate cuts could push mortgage rates down and stimulate demand, pushing home prices higher.