Mortgage rates have fallen following last week's announcements that the Federal Reserve is holding interest rates steady and U.S. job creation has slowed. The average fixed rate on a 30-year mortgage fell 0.13% over the past week to 7.09%, Freddie Mac reported Thursday. The decline follows five weeks of increases.

The home loan mortgage company tempered the news, saying “an environment where rates continue to hover above 7% impacts both sellers and buyers. Many potential sellers remain hesitant to list their home and part with lower mortgage rates from years prior, adversely impacting supply and keeping house prices elevated.”

The higher prices are presenting affordability challenges for potential buyers.

The median monthly housing payment in the U.S. hit an all-time high over the four weeks ending May 5. It is now $2,894 — up 14% compared with a year earlier. Home prices are up 4.5% compared with a year earlier — also a record, Redfin said.

While new listings are up 9% compared with a year earlier, pending sales dropped 3% over the four weeks ending May 5.

“There are signs that competition for homes is slowing during a time of year when it typically speeds up,” Redfin said in a statement.

Of the homes that were purchased, 30% sold for more than the asking price over the last four weeks; two years earlier, 50% sold for more than asking. Redfin said 6.2% of home sellers dropped their asking price over the past four weeks, compared with 4.3% who did so a year ago.

“The market is a mixed bag, with high mortgage rates causing some listings to sit longer than I would expect in the springtime and high prices holding steady,” Redfin Premiere against David Palmer said in a statement. “Sellers can rest assured that there are plenty of motivated buyers who are jumping into the market now; they finally understand that rates aren’t going to plummet anytime soon.”