Mortgage rates hover near 7%

Mortgage rates slipped this week, but homebuyers are waiting for a more significant drop before entering the expensive housing market.

The average rate for 30-year mortgages remained below the 7% mark, but not by much, settling at 6.91% on Thursday, according to Mortgage News Daily.

Another measurement tracking weekly average rates for the 30-year loan inched down to 6.79% from 6.87% a week prior, according to Freddie Mac.

However, homebuyers largely dismissed this week’s drop as they wait for the Federal Reserve to cut rates, which is a possibility at the central bank’s June meeting. Not only would financing be cheaper, but more sellers could also be prompted to list their homes — a dual benefit for those who have been sidelined by affordability challenges.

“Purchase applications were essentially unchanged, as homebuyers continue to hold out for lower mortgage rates and for more listings to hit the market,” said Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association.

Fed Chair Jerome Powell said monetary policy could begin easing "at some point this year." Market watchers, meanwhile, are hopeful that the first cut could come in June.

Rebecca Chen is a reporter for Yahoo Finance and previously worked as an investment tax certified public accountant (CPA).