Rocket Companies Inc., through real estate brokerage Redfin, has reported that U.S. mortgage rates have dropped to a three-year low, with the daily average at 6.17%. This decrease has modestly increased homebuyers' purchasing power; for example, a buyer with a $3,000 monthly budget can now afford a $473,750 home, up from $447,750 a year ago. Despite this improvement, buyer activity remains subdued, with pending home sales down 0.7% year over year and only slight gains in Redfin's Homebuyer Demand Index. The median U.S. home sale price reached $391,250, a 2% increase-the largest in six months. New listings are up 4.6%, while active listings rose 7.1%, the smallest increase since early 2024. The market is becoming more balanced with 4.6 months of supply, though homes are taking longer to sell, with a median of 48 days on the market. Only 23% of homes sold above list price, down from 26% last year, indicating less competition among buyers even as affordability improves.