Higher mortgage rates have slowed down market activity, as would be buyers have been forced to reduce the amount of money they can afford to pay for a home.

Meanwhile, current homeowners have been reluctant to either move to a bigger house or downsize and give up their ultra-low, pandemic-era mortgage rates.

The combination has created a situation where housing inventory remains low, and prices have not yet dropped sufficiently to attract more people into the market.

According to CBS News Business Analyst Jill Schlesinger, those interested in becoming homeowners don’t have to sit on the sidelines in this environment.

Schlesinger suggested considering an adjustable-rate mortgage, which decreases the amount of interest for a fixed period of time. The loans work well for those who will likely sell or refinance by the end of the fixed period.

Additionally, the rate for a new mortgage can be lowered by paying discount points. These upfront fees can bring down the monthly payment, either permanently or temporarily.