A then–newly purchased house in Chicago’s Lincoln Park neighborhood undergoes renovation in 2022. A big drop in mortgage rates has prompted homeowners to refinance their home loans. The numbers: Applications for mortgages rose sharply as homeowners and home buyers pounced on falling mortgage rates.

The recent drop in mortgage rates hasn’t sparked the homebuying surge many industry experts anticipated. Instead, potential buyers are holding firm, contributing to what some analysts are calling a “buyer strike” in the housing market.

While the Freddie Mac survey found the 30-year fixed fell 11 basis points, other indicators, including the 10-year Treasury yield, have all increased.

The average rate on a 30-year mortgage in the U.S. edged closer to 6% this week to its lowest level since early February 2023. The rate fell to 6.09% from 6.20% last week, mortgage buyer Freddie Mac said Thursday.

Mortgage rates declined to their lowest level since February 2023 after the Federal Reserve instituted a significant interest rate cut. In the past week, the standard 30-year, fixed-rate mortgage averaged 6.

The mortgage real estate investment trust (mREIT) industry is witnessing a rebound thanks to declining mortgage rates. This has resulted in improvement in purchase originations and refinancing activities.