Home Listings Shortage Leads to Drop in Mortgage Demand and Government Loan Requests

The Mortgage Bankers Association's index of mortgage applications fell 4.1% last week as potential homebuyers struggled to find listings on the market amid a lack of supply. New listings are down 20% in March compared to last year, and total inventory remains about half of what it was in March 2019. Despite a significant pickup in February, existing home sales remain low. Median home prices climbed 0.16% in February from a month earlier, and prices are expected to climb higher as rates continue to drop and supply remains constrained.