Mortgage rates are dropping — so why aren’t more people buying homes?

Home price appreciation is slowing. Consumer sentiment about the housing market is at a five-year high.

To cap it all off, mortgage rates have continually fallen throughout 2019 to date. Currently, the 30-year fixed-rate mortgage is averaging 3.82%, roughly a two-year low, according to Freddie Mac. So far this year, mortgage rates have only increased on a weekly basis six times.

Historically, that’s been a recipe for a home-buying frenzy. “We are in an extremely interest-rate-sensitive housing market,” said Daren Blomquist, vice president of market economics at Auction.com.

In the past, home buying activity has gone up when rates have gone down, and vice versa. “There’s a lot of hopefulness that cycle will repeat in 2019,” Blomquist said.