Rates on 30-year fixed mortgages rose to 6.84 percent for the week ending Nov. 21, up from 6.78 percent last week, according to Freddie Mac. Sam Carter, Freddie Mac's chief economist, said rates are near 7 percent and demand for home purchases continues to be low during the holiday season.

Mortgage Rates Remain High as Market Pace Slows

Although mortgage rates fell to 6.08 percent in late September, they climbed above 6 percent again after October and hovered at high levels. Realtor.com senior analyst Hannah Jones pointed out that high interest rates “cooled the housing market in late fall” and put pressure on home buyers.

As market uncertainty grows, economists expect the Federal Reserve may pause in December to cut interest rates, and Sabrina Spianu, economic data manager at Realtor.com, cautioned that keeping an eye on mortgage rates is critical for homebuyers.

Home prices drop slightly, listings increase

For the week ending Nov. 16, the median home listing price declined 0.7 percent year-over-year, marking the fourth consecutive week of a downward trend, opening up potential opportunities for buyers. Meanwhile, new listings increased 3.5% year-over-year, and the total number of homes for sale was 25.9% higher than a year ago, marking the 54th consecutive week of growth.

However, listing growth has slowed and sellers are generally on the sidelines. About 84 percent of existing mortgages have interest rates below 6 percent, further reducing homeowners' willingness to sell their properties.

Buyers More Cautious

The average market stay for homes lengthened as buyers waited for more favorable home-buying conditions. For the week ending Nov. 16, homes were listed for 10 more days than a year ago (the average listing time in October was 58 days). Spianu noted that this reflects a more balanced but slower-paced market.

For buyers ready to enter the market, there is less competition in the current market, which may result in better deals.