Recently, data released by Freddie Mac showed a decrease in mortgage rates for the first time in the past five weeks, with the average rate for a 30-year fixed-rate mortgage dropping from 7.22% the previous week to 7.09% for the week ending May 9. This change marks a "slow spring" for the real estate market.

Sam Khater, Chief Economist at Freddie Mac, stated in a release that this decline is attributed to weaker employment reports, leading to a retreat in mortgage rates. Although this news is positive, overall, high rates continue to pose challenges for the spring market, with both buyers and sellers reluctant to engage in transactions during this busy season.

Khater pointed out that rates persisting above 7% have implications for both sellers and buyers. Many potential sellers are unwilling to list their homes due to the comparatively higher current rates than a few years ago, leading to limited inventory and consequently driving up prices, increasing the burden on buyers.

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Jiayi Xu, economist at Realtor.com®, also stated in a recent analysis that the rise in mortgage rates has increased the cost of homeownership, leaving many potential buyers frustrated and delaying their purchasing plans. This has also led to sellers postponing their sales plans, resulting in a slowdown in listing activity.

However, the recent decision by the Federal Reserve to keep rates unchanged, with expectations for future rate decisions to be influenced by inflation and employment data, keeps buyers and sellers hopeful for future market changes.

For buyers, although mortgage rates have risen, as of the week ending May 4, home prices have decreased by 0.2% compared to the same period last year, making homes more affordable for more people. Additionally, there are many affordable homes in the southern region priced between $200,000 and $350,000, providing more options for buyers seeking affordable housing.

While the number of newly listed homes is increasing, the growth rate has slowed significantly under the pressure of high mortgage rates. Many sellers may postpone their selling plans. However, the total number of homes for sale has increased by 35.1% year-on-year, providing buyers with more choices.

Despite persistently high mortgage rates, buyers are still actively bidding. Compared to the same period last year, the typical property spends one less day on the market, indicating that while rising rates may delay some buyers' decisions, it also intensifies market competition, prompting some buyers to be more eager to lock in favorable rates.