The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased last week to 6.37% from 6.34% The overall average loan size across both purchase and refinance applications fell to its lowest level since August of this year.

That means a buyer securing a 30-year mortgage today pays approximately $395 less each month than someone who borrowed in January, resulting in a savings of about $4,740 annually. For 15-year borrowers, today's rates cut monthly payments by roughly $269, translating to about $3,230 in yearly savings.

"The recent easing in mortgage rates has begun to open the refinance window for many borrowers, particularly those who originated loans in the past two years," says Andy Walden, head of mortgage and housing market research at ICE, in a release.

Financial advisors can help clients look beyond mortgage payments when considering affordability and their capability to cover financial obligations long-term.

Mortgage rates average 6.38% as pending home sales increase 15% year over year, with markets watching for another Fed rate cut.

The Federal Reserve signaled this week that aspiring home buyers expecting more interest-rate relief may have to keep waiting.