Mortgage rates have recently dipped, leading to a slight increase in home loan applications. However, overall demand for mortgages remains low due to the challenging rates. Experts predict that mortgage rates won't see significant declines in the near future. The housing market is affected by factors such as limited inventory, high housing costs, and low affordability. Sellers are also facing challenges, as they are reluctant to sell their homes due to higher mortgage rates. Lack of inventory continues to drive competition among buyers. Despite low demand, home prices have not decreased significantly. Housing affordability remains at its lowest point in 40 years.