Recent data shows that U.S. mortgage rates have dropped to their lowest levels since early 2023, with 30-year fixed rates falling below 6%. Despite these reductions and predictions of further drops, many potential homebuyers remain hesitant to enter the market. Economists point to two key factors explaining this restraint: the lingering effects of the housing wealth gap and low housing inventory. While the upcoming season is traditionally viewed as the best time to buy a house, the relationship between mortgage rate cuts and real estate activity is complicated. Experts emphasize the importance of understanding budget calculations amidst fluctuating rates and warn that even with potential price adjustments, the housing market may not see significant movements until a more stable environment is established.