Home insurance costs averaged $209 a month for U.S. single-family mortgage holders in the second quarter of 2026, up 8.7% from a year earlier. Meanwhile, housing data released October 29 showed another decline in advertised home prices. The contrast matters to homeowners and buyers calculating their total monthly housing expenses.
Key Takeaways
- ICE measured average property insurance payments of $209 a month among single-family mortgage holders in the second quarter
- Annual insurance cost growth slowed to 8.7%, down from a 15.1% peak in late 2024
- Realtor.com reported a $414,000 median asking price for the week ending October 24, down 1.4% annually
- Freddie Mac’s average 30-year fixed mortgage rate stood at 7.24% on October 29, above its level a year earlier
Home insurance costs remain elevated for U.S. mortgage holders even as asking prices for homes on the market have declined. Reports from Intercontinental Exchange (ICE) and Realtor.com show how the amount needed to buy a property can move differently from the cost of maintaining coverage on it.
The insurance findings cover the second quarter, while the listing figures describe the week ending October 24. They are not direct measures of the same homes or period. For households comparing properties, both measures can affect the calculation of what is affordable.
Home Insurance Costs Reach $209 as Premium Growth Slows
ICE’s September 10 Mortgage Monitor put the average property insurance payment for a single-family mortgage holder at $209 a month, or $2,508 over a year. That was nearly 80% higher than at the start of 2020 and accounted for 9.6% of the average monthly mortgage payment in its data.
The increase is continuing, but at a slower pace. Insurance costs grew 1.8% from the first quarter to the second, the smallest quarterly gain since ICE began tracking the measure. Annual growth declined from 11.4% at the start of 2026 and a 15.1% peak at the end of 2024.
Andy Walden, ICE’s head of mortgage and housing market research, said in the September report that “the pace of increase is finally slowing.” The statement describes a deceleration, not a reversal in the overall cost of coverage.
Part of the increase reflects how much protection homeowners carry. ICE found that coverage limits rose 5.5% over the previous year and explained roughly two-thirds of the annual insurance cost increase. Prices per $1,000 of coverage rose 3%.
That distinction matters because a home’s sale price is not the same as its insured rebuilding cost. The National Association of Insurance Commissioners notes that replacement-cost coverage concerns repairing or rebuilding a property, while market value also reflects the land and local real estate conditions.
Lower Asking Prices Do Not Guarantee Lower Housing Payments
Realtor.com’s October 29 weekly report placed the national median asking price at $414,000 for the week ending October 24, down 1.4% from a year earlier. Median price per square foot also declined, by 1.3%.
More properties remained available to buyers. Active listings rose 8% from a year earlier, while new listings fell 1.5%. Homes spent a median of 64 days on the market, one day longer than in the comparable week of 2025. The figures suggest the growth in available supply partly reflects slower sales activity rather than a wave of new listings.
The pattern was evident in September, when U.S. housing inventory growth coincided with price reductions on 20.8% of active listings, according to Realtor.com. That was the highest September share since 2018.
Asking prices should not be confused with completed sale prices. The National Association of Realtors reported a September median existing-home sale price of $417,500, up 1.3% from a year earlier. The two measures use different property groups and reporting periods.
Borrowing costs can also absorb some of the benefit of a lower purchase price. Freddie Mac said the average 30-year fixed mortgage rate eased to 7.24% on October 29 from 7.32% the week before, but remained above the 6.17% average of a year earlier. The overall payment depends on the loan amount, down payment, interest rate, taxes and insurance.
Regional Insurance Differences and Escrow Changes Affect Budgets
ICE recorded particularly large annual insurance cost increases in Greenville, South Carolina, at 15.8%, Honolulu at 14.7%, and Minneapolis at 13.1%. Sacramento and San Diego each recorded increases of approximately 12%. These percentages describe insurance costs among borrowers in those areas, not changes in local home prices.
Insurance also accounts for very different shares of mortgage payments. ICE estimated that share at 24.3% in New Orleans and 4.3% in San Jose, California. The figures should not be treated as a single premium quote for every property in either city.
In rural California, wildfire risk and insurance access can affect home purchases when lenders require acceptable property coverage. Beyond location, the National Association of Insurance Commissioners identifies construction type, home age, coverage amounts and deductibles as factors that may change policy costs.
Changes can also affect people who already own homes. The Consumer Financial Protection Bureau explains that many mortgage servicers collect insurance and property taxes through escrow accounts. If those expenses rise, the escrow portion of the monthly bill may increase even when principal and interest on a fixed-rate mortgage stay the same.
ICE found that homeowners who changed private insurance carriers during the prior year saw premiums fall 6.6% on average, while those who stayed with their carrier experienced average increases of 10.4%. The findings describe those groups, not guaranteed savings from switching. Comparing quotes also requires checking deductibles and coverage, since standard homeowners policies typically exclude flood damage.
Frequently Asked Questions
Why are home insurance costs rising when asking prices fall?
Home insurance costs depend on factors including rebuilding coverage, property location and policy terms, not solely a home’s asking price. ICE found that higher coverage limits explained roughly two-thirds of the annual insurance cost increase it measured.
Can a fixed-rate mortgage payment still increase?
Yes. Principal and interest generally stay level on a conventional fixed-rate loan, but the escrow amount can change when property taxes or insurance premiums change.
Are U.S. home prices falling nationwide?
The figures differ by measure. Realtor.com recorded lower national asking prices in late October, while the National Association of Realtors reported higher prices for completed existing-home sales in September.
Does switching home insurers always reduce premiums?
No. ICE observed an average 6.6% premium decline among borrowers who switched private carriers, but individual quotes depend on a property’s circumstances and the coverage selected.
