Now, with mortgage rates hitting a new low and the potential for further decreases, homebuyers can find relief and an improved ability to purchase homes.

Sam Khater, Chief Economist at Freddie Mac, states, "Given the continued deceleration of inflation and the Federal Reserve's current expectation of lowering target rates next year, we are likely to see a gradual thawing of the real estate market in the coming year." This implies the possibility of more rate reductions in the future.

In addition to the drop in mortgage rates, this week has also seen new listings hitting the market, bringing another significant gift to homebuyers. In the week ending December 9, new listings increased by 6.8% compared to the same period last year, providing homebuyers with more choices and opportunities.

To make the good news of declining mortgage rates even better, a key factor is the decrease in housing prices. In the week ending December 9, prices increased by 1.5% compared to the same period last year, marking the highest growth rate since May.

However, determined homebuyers can benefit from seasonal price trends. After reaching a peak in June, prices steadily declined until November. Currently, the median list price nationwide is 6.8% lower than this year's peak. Over the next few months, list prices may continue to seasonally decrease.

The combination of lower mortgage rates and declining housing prices is good news for homebuyers. Lower rates can alleviate the burden on homebuyers and increase their purchasing power. The drop in housing prices means that homebuyers can purchase homes at lower costs, reducing the overall expense.

Furthermore, the decline in mortgage rates is also attractive to sellers. With buyers locking in lower rates, sellers may find it easier to sell homes, contributing to the increase in new listings.

It's important to note that the real estate market is complex and influenced by various factors. Homebuyers should consider their individual circumstances and market trends when making decisions. Additionally, changes in interest rates and housing prices are also affected by economic and policy environments.