According to Redfin, in December 2025, 29% of U.S. homebuyers paid all cash, down from 30.3% a year earlier and the lowest level the month of December has seen since 2020. Cash purchases peaked at nearly 35% in late 2023 when mortgage rates were in the high-7% range, prompting buyers to avoid higher interest payments. With the average 30-year fixed rate now moving lower, fewer buyers feel compelled to pay cash.
The market has shifted significantly in buyers’ favor, with sellers outnumbering buyers by a record 47%. With less competition, buyers no longer need aggressive tactics, like all-cash offers or waived contingencies, to win homes.
Among buyers using mortgages, 14.4% used FHA loans in December, down from 15.1% a year earlier and the lowest December share since 2021. Conventional loans accounted for 78.6% of mortgaged purchases which is the highest December share since 2021.FHA rates have recently declined, which could help bring some buyers back.
As we head into the spring market and more homes hit the market, increased buyer activity is expected to follow—bringing renewed competition and shifting leverage back toward sellers in many areas.
Source : https://bit.ly/4qLl7We
By: Jon Iacono