The black line graph is the mortgage rate. As you can see, we mean it when we keep saying interest rates are at historical lows. And I know it seems like we've been saying that since mid 2019, because it's true.
The important one to track here is the pink color, which reflects the purchase applications. You can see the big dip in early 2020 when purchase volume was affected by stay-at-home orders due to COVID-19. But, that is the sharpest of "V" shaped recoveries. Basically buyers are saying, "yes, this is scary but I need to buy something anyway." Then we see the applications go up, up and away.
We have a massive inventory shortage, and there doesn't appear to be a big drop in demand or property values. But, there will be moments where the market "takes a breath". That will be an opportunity for a motivated and realistic buyers to find some homes that may have slipped through the cracks.
For more information on mortgages: http://www.mortgagenewsdaily.com/data/mortgageapplications.aspx