Mortgage rates dropped to their lowest levels since 2022 last week, breathing life into a sluggish housing sector. The decline sparked immediate interest from buyers and homeowners looking to refinance existing loans.

The Federal Reserve's recent pause in interest rate hikes has helped push down borrowing costs. Many economists believe this could mark a turning point for residential real estate activity that has been hampered by affordability concerns.

Industry experts expect continued demand as rates remain below 7%. However, housing inventory shortages may limit how much the market can recover in the near term.