Housing supply remains tight, with existing home inventory far below pre-pandemic levels, limiting demand recovery.
Economists warn the drop may be temporary, driven more by market volatility than strong economic data.
Mortgage applications jumped about 22% year-over-year, suggesting lower rates are nudging hesitant buyers.
The average forecast across major agencies is roughly 6.2% for 2026.
U.S. 30-year mortgage rates dip below 6% for the first time in three and a half years.
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