That assessment is based off of Freddie Mac's latest mortgage rates report, putting the average 30-year fixed-rate mortgage at 6.61% for the weekly period ending Dec. 28. Borrowers are putting 35.9% of a median household income toward a mid priced home's principal and interest payment, down from 40.3% in October, ICE Mortgage Technology said. 

"In simple dollars and cents, it requires $279 less per month to purchase the median priced home when compared to late October," said Andy Walden, vice president of enterprise research at ICE, in a statement.

Buying power is still significantly strained compared to historical norms. Home prices were up 5.1% annually in November, according to ICE's home price index. The drop in mortgage rates, from a recent high of 7.79% in late October, has provided some loan relief. 

Still, the Mortgage Bankers Association last week reported declining home loan applications for the first time since that high-rate, late October stretch. In a separate report Thursday, Redfin found pending home sales down 4% annually for the four week-period ending Dec. 24, the smallest decline since March 2022. 

The cold winter housing market is showing other signs of life, Redfin reported. The 817,863 active listings as of Dec. 24 is 3.8% lower year-over-year, but that's also the smallest yearly decline since June. A quarter of homes are still being sold above their listing price, with the median sales price at $364,250, according to the brokerage. Google searches for "home for sale" were also up 8% from November, according to Google Trends. 

"November's seasonally adjusted annualized rate (SAAR) of +1.6% suggests that, while annual price growth has risen in recent months, annual growth rate should moderate into 2024," read ICE's November report.