Prospective homebuyers are seeing a glimmer of hope as mortgage rates dropped closer to 6% for the fifth consecutive week. Freddie Mac data reveals that in the week ending April 13, the 30-year fixed-rate mortgage averaged 6.27%, slightly down from the previous week's 6.28%. This decline is due to cooling inflation and tight labor markets, creating increased optimism among homebuyers as the housing market reaches its peak in spring and summer.

Freddie Mac's chief economist, Sam Khater, highlights that incoming data suggests inflation remains above the desired level but is showing signs of deceleration, fueling prospective homebuyers' enthusiasm. However, the survey includes only borrowers who have excellent credit and put 20% down.

Mortgage rates are also influenced by the actions of the Federal Reserve, even though it does not directly set the interest rates that borrowers pay on mortgages. Mortgage rates tend to track the yield on 10-year US Treasury bonds, which moves based on a combination of anticipation about the Fed's actions, what the Fed actually does, and investors' reactions.

Despite recent signs of a slowing economy and tighter financial conditions, buyers and sellers have shown some improvement in sentiment toward housing with higher levels of pending sales. The recent drops in rates have brought in some buyers, leading to an 8% jump in applications to buy a home. If the current dip in mortgage rates can be sustained, it is likely to increase demand in the housing market.

In conclusion, the dip in mortgage rates, due to cooling inflation and influenced by the Federal Reserve's actions, has provided prospective homebuyers with optimism in the housing market, leading to an increase in demand.