Freddie Mac announced Thursday that 30-year fixed-rate mortgages averaged 6.27 per cent for the week ending April 13, down from 6.28 per cent the week before. However, this is still significantly higher than a year ago, when rates averaged 5 per cent.

This could change in the coming months, however, as a government report released on Wednesday showed that the overall inflation rate fell in March.

Calmer inflation means lower mortgage rates, ultimately," said Lawrence Yun, chief economist at the National Association of Realtors®, in a press release responding to the inflation report.

Moreover, he predicted that the news would get better in the coming months: "Mortgage rates slipping below 6% looks very likely by the end of the year.

Will lower mortgage rates save the housing market?

Yes, property listing prices are still rising. For the week ending 8 April, they were 3.2% higher than a year ago. But those gains are getting smaller and smaller by the week, and economists at Realtor.com previously predicted that prices would fall completely by the summer.

"Relative to the end of 2022, these modest declines mean a bit of relief for homebuyers," noted Danielle Hale, chief economist at Realtor.com®, in her weekly analysis.

But with prices and interest rates still rising, it's a no-brainer: "Affordability remains a challenge," Hale says.

Some buyers were so disappointed by the news that many simply decided not to buy for the time being. A recent U.S. News & World Report survey found that two-thirds of homebuyers are holding off looking for a home until mortgage rates drop.

As for how low they need to go to get homebuyers to act, 28 per cent said they would resume buying a home once rates dropped below 6 per cent; 30 per cent planned to wait until rates dropped below 5.5 per cent; and a further 26 per cent were optimistic that they would abstain until rates dropped below 5 per cent. However, experts say this is unlikely to happen in 2023, so these homebuyers may have to wait a long time.

It's not just homebuyers who are waiting for mortgage rates to drop.

"Homeowners seem to be well aware of the changing situation and more are choosing to sit on their hands rather than list their homes for sale," Hale observed.

In the week ending April 8, the number of new homes on the market was down 32 per cent compared to the same period last year, although spring break may have skewed some activity.

"That said, the number of new homes on the market remains a weak link in the 2023 housing market," Hale added.

Any homeowners on the fence about whether to list their homes may want to rush: Realtor.com economists have determined that the coming week, April 16-22, is the best time to list a home for sale in 2023. Nevertheless, many may have decided to wait for this year.

Homes continue to languish on the market for longer. In the most recent week, they were on the market an average of 19 days longer than they were a year ago. The longer these listings stay on the market, the larger the overall inventory becomes, with the total number of active listings (new and used) up 44% compared to a year ago.

It is clear that the housing market needs some help to get unstuck. Whether mortgage rates will fall enough to get things moving remains to be seen.