(Bloomberg) -- US mortgage rates slipped for the first time in five weeks as buyers head into the traditionally busiest season for the housing market.

The average for a 30-year, fixed loan was 6.88%, down from 6.94% last week, Freddie Mac said in a statement Thursday. 

Borrowing costs have been hovering above 6.5% since May 2023, limiting the purchasing power of many potential homebuyers. That has weighed on demand and spurred questions about how the market’s key season — which normally begins after the Super Bowl — will shape up this year. 

“Mortgage rates continue to be one of the biggest hurdles for potential homebuyers looking to enter the market,” Sam Khater, Freddie Mac’s chief economist, said in the statement.

One pain point — the lack of properties for sale — is starting to ease slightly with new listings rising. More affordable properties are hitting the market. There were 20.6% more available homes ranging from $200,000 to $350,000 in February than there were a year earlier, according to Realtor.com.

“While more affordable options are encouraging, the current high mortgage rate environment makes it less affordable than it could be, continuing to create barriers to homeownership,” said Jiayi Xu, a Realtor.com economist.

Read More: Homebuyers Get More Options as Steep Prices Lure Holdout Sellers

Federal Reserve policymakers including Chair Jerome Powell have signaled that it may be appropriate to cut rates later this year, while indicating that the central bank is not ready yet.

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