W
ith the election behind us and interest rates stabilizing, more potential buyers are taking a closer look at homes. Key takeaways include:

    The 30-year fixed-rate mortgage averaged 6.78% in Freddie Mac's latest survey, ending six consecutive weeks of increases.

    Despite two recent rate cuts from the Federal Reserve, analysts expect inflation to rise again, keeping mortgage rates elevated.

    Home touring jumped after the election as some certainty returned to the market, but buyers face a challenge with high mortgage rates.

    Mortgage rates were essentially flat this week, averaging 6.78%, down slightly from last week's 6.79%. The 15-year fixed-rate mortgage also ticked down to 5.99%.

    Rates could "modestly ease through 2025" if the economy continues to normalize and inflation moderates, said Odeta Kushi of First American.

    Economic data showed inflation rising again, with the Consumer Price Index at 2.6%. This may lead the Fed to pause rate cuts in December rather than cutting further, keeping long-term rates high.

    Some positive trends include a conclusive election providing market certainty and inventory levels reaching their highest since December 2019, with nearly 20% of listings offering price cuts.

    Demand rose after the election, according to Redfin's demand index, which measures home tours and other buying services. The index was up over 15% based on post-election weekend data.

    Mortgage applications increased by 0.5% overall this week, driven by a rise in FHA and VA loan applications, said Joel Kan of the Mortgage Bankers Association.