Mortgage rates decline for fifth consecutive week, but buyers remain cautious

Mortgage rates have dropped for the fifth consecutive week, with the 30-year fixed-rate mortgage falling to an average of 7.22% in the week ending November 30. This decline in rates is encouraging for potential homebuyers, as purchase application activity has increased. However, the housing market still faces challenges due to low inventory. The Federal Reserve's upcoming meeting on December 12-13 will be closely watched for indications of future rate hikes. While affordability is expected to improve in the coming year, mortgage rates are projected to remain elevated, potentially leading to a decline in for-sale inventory.