Mortgage rates dropped for the first time in months

Mortgage rates fell for the first time in over two months, though they remain not far off from multiyear highs.

The average 30-year fixed-rate mortgage was 7.32% this week through Wednesday, down from 7.4% a week earlier, according to Freddie Mac data.

Treasury yields, which mortgage rates closely track, eased slightly this week as investors fled to safe-haven assets amid growing political and economic unrest in Europe.

Despite very slight rate relief, home buyers are staying on the sidelines. Mortgage applications for new home purchases dropped 7% through Friday from a week earlier, according to the Mortgage Bankers Association.

"The housing market continues to face significant headwinds as elevated mortgage rates and affordability pressures keep many prospective buyers on the sidelines," MBA president and CEO Bob Broeksmit said in a statement.

Claire Boston is a senior reporter for Yahoo Finance covering housing, mortgages, and home insurance.