"Homebuyers Face Challenges as Mortgage Demand Declines Amid Inventory Shortage"

Mortgage demand dropped last week as buyers faced increased competition for a limited supply of homes, with applications for purchase falling 11% and refinance demand increasing 2%. The average contract interest rate for 30-year fixed-rate mortgages remained unchanged at 6.78%, with points rising to 0.65. Low existing housing supply and elevated home-price growth continue to constrain home purchase activity, while lower mortgage rates are putting more pressure on home prices and bringing more buyers into the market. The Federal Reserve's upcoming meeting and Friday's monthly employment report could impact mortgage rates.