At the end of January 2023, the 30-year loan interest rate went down a whole percentage point to 6.13% from November 2022’s 7.08%. Those in the industry feel that if there is another dip in the mortgage rates, home buyers will come back to the housing market. In fact, the end of January also saw a rise in mortgage applications by 3% according to Mortgage Bankers Association. 
“Homebuying activity remains tepid, but if rates continue to fall and home prices cool further, we expect to see potential buyers come back into the market,” says Joel Kan, an MBA economist. “Many have been waiting for affordability challenges to subside.”
“As a result, home purchase demand is thawing from the monthslong freeze that gripped the housing market,” says Sam Khater, Freddie Mac’s chief economist. “Potential home buyers remain sensitive to changes in mortgage rates, but ample demand remains, fueled by first-time home buyers.”
Buyers are coming back to the market because they realize that the low 3% interest rates are not coming back in the near future. Freddie Mac reports that at the end of January, the national average for a 30-year fixed rate was 6.13% and the 15-year fixed rate was 5.17%.