M
ortgage rates have stabilized, hovering just under 7% for five consecutive weeks. This offers more predictability for prospective buyers to plan their home purchases. According to Jessica Lautz, deputy chief economist at the National Association of REALTORS®, mortgage rates are expected to remain in the mid-6% range in the coming weeks.

    This could be a positive sign for the spring homebuying season, as buyers can now search for homes without the uncertainty of fluctuating mortgage rates. However, despite the slight easing of mortgage rates, loan applications have been falling. Mortgage applications to purchase a home dropped 6% last week and are at their slowest pace since the beginning of the year.

    Despite this, there is a more hopeful sign: applications are 7% higher than a year ago. Housing affordability remains a challenge due to limited housing inventory and record-high home prices. At current rates, a $400,000 home with a 20% down payment would require a monthly mortgage payment of $2,097.

    Prospective buyers may become more confident in making a purchase as rates have fewer swings week to week. Sam Khater, Freddie Mac's chief economist, notes that this stability is beneficial for both potential buyers and sellers as the spring homebuying season approaches.

    All-cash buyers continue to be a significant share of the housing market, with over a quarter of home buyers in the last 28 months not financing their homes. National averages for mortgage rates are: 30-year fixed-rate mortgages averaged 6.85% (down from 6.87% last week), and 15-year fixed-rate mortgages averaged 6.04% (down from 6.09%).