They’re, um, still struggling to buy the homes.

“They” is any American who wants a house and doesn’t already have one.

The housing market aficionados among you might recall that purchase apps as tallied by the MBA rose smartly earlier this month suggesting a strong start to November. Alas, activity slipped over the last week as rates rose further.

The uptick in financing costs wasn’t pronounced, but it was nevertheless the third consecutive. At 6.37%, rates are the highest in nearly a month. And yet, as the figure below reminds you, it’s still far cheaper to borrow now than it was at the beginning of the year.

Note that the purchase index (the white line) is inverted in the chart. The shaded area indicates that the most recent leg down for rates (which hit a 13-month low late last month) hasn’t done much to spur buying.

“Application activity over the week was lower, with potential homebuyers moving to the sidelines again,” MBA VP Joel Kan remarked, in forlorn commentary on Wednesday. “Refinance applications decreased as borrowers remain sensitive to even small increases in rates at this level.”

The color accompanying this month’s update on builder sentiment was similarly downcast. “While lower mortgage rates are a positive development for affordability conditions, many buyers remain hesitant because of the recent record-long government shutdown and concerns over job security and inflation,” NAHB Chairman Buddy Hughes said.

At 38, headline builder sentiment improved slightly from October, but it’s still deeply depressed.

The figure above’s a stark reminder: There have been only four NAHB prints north of 50 since August of 2022.

That should bode poorly for housing starts, but it’s hard to know for sure: The Census Bureau and HUD skipped another starts and permits release on Wednesday.

The NAHB report for November showed 41% of builders cut prices this month, a post-COVID high. Two thirds resorted to some manner of sales incentives.

“We continue to see demand-side weakness,” NAHB Chief Economist Robert Dietz sighed. “A softening labor market and stretched consumer finances are contributing to a difficult sales environment.”