Home prices continued to rise in the fourth quarter of 2025. National median prices rose 1.2% year over year to $414,900.
Monthly mortgage payments on a single-family home in the fourth quarter decreased 5.7% to $2,057 compared to $2,122 from a year ago. Qualifying median family incomes fell to $98,720, compared with $104,750 in the third quarter of 2025 and $101,856 a year ago. The effective 30-year fixed mortgage rate decreased to 6.31% in the fourth quarter of 2025, down from 6.73% a year earlier. Median family incomes rose to $107,751 in the fourth quarter of 2025 compared to $102,795 a year ago.
Knowing mortgage rates and qualifying income requirements for down payments will help potential homeowners determine which metro areas are affordable for them.
Here is a look at the metro areas with the strongest price growth in the fourth quarter of 2025, as well as a look at the yearly change in median existing single-family home prices among the top five highest and lowest growth metro areas of the fourth quarter of 2025.
These Are the Top Five Single-Family Metro Areas with the Highest Home Price Appreciation:
These Are the Bottom Five Single-Family Metro Areas with the Slowest Home Price Appreciation:
These Are the Most Expensive Metro Areas for the Fourth Quarter of 2025:
These Are the Least Expensive Metro Areas for the Fourth Quarter of 2025:
Qualifying Income Based on Sales Price of Existing Single-family Homes for Metropolitan Areas by Region
At the 5% down-payment threshold, the qualifying income amount for the fourth quarter of 2025 in the US was $117,230. At the 10% down-payment mark, the qualifying income was $111,060, and with a 20% down-payment, the income required to qualify for a mortgage was $98,720. The West had the highest qualifying income among all 4 regions, while the Midwest had the lowest income for 5%, 10%, and 20% down payments on a single-family home.
