The average rate for a 30-year fixed mortgage was flat at 6.35% for the week ending September 5, according to data from Freddie Mac.

Redfin CEO Glenn Kelman (RDFN) says that homebuyers are very slowly responding to the drop in rates, saying he has "never seen buyers respond so sluggishly to low interest rates."

Kelman attributes the lag to a few different factors, including waiting to see what the Federal Reserve will do at its September meeting. However, he notes that "mortgages have already priced in at least a quarter-point cut, and if that is all that we get, we might actually see mortgage rates increase, whereas if we get a 50 basis point cut, rates will drop further." Another contributing factor, he says, is the lack of listings, with some areas having stale inventory.

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This post was written by Stephanie Mikulich.