The mortgage rate drop provides little relief for prospective shoppers looking ahead to the spring homebuying season.

It's important to understand that the Fed's decision to pause rate cuts will not directly impact mortgage rates. Mortgage rates are actually driven by a range of factors, including the Fed's rate changes. This week's Fed rate decision does, however, have a big influence on where mortgage rates could head.

Mortgage rates are largely stuck at 7% for the time being. The Federal Reserve on Wednesday announced that it was holding its benchmark interest rate steady. The 30-year mortgage rate barely budged following the Fed’s announcement,

British lenders approved 66,526 mortgages in December, more than expected by economists, Bank of England data showed on Thursday.

Mortgage approvals in the UK bounced back unexpectedly in December in signs that housing demand remains resilient in the face of rising borrowing costs.