The demand is still there. I’m in the market and it’s about impossible to find a house that doesn’t sell in a day
That’s the problem imo. Lack of supply and/or overpriced homes. The rich and wealthy are snapping them up as they are already set to close a deal in a day. If you can’t find, or afford, a home you won’t fill out a mortgage application. That is why the applications are down. IMO.