Author: Diana Olick, CNBC

Housing supply is soon expected to drop and could hit a new low.

Apartment demand in the second quarter of 2019 jumped 11% from last year.

Refinance mortgage applications rose by 39%, the highest level in more than three years, after the biggest one-week interest rate drop since 2016.

Total mortgage application volume rose 1.6 percent last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

Mortgage interest rates are now lower than a year ago, and home shoppers are buying in, but most are wealthier and purchasing more expensive homes.

Sentiment among homebuilders dropped 8 points in November to 60 in the National Association of Home Builders/Wells Fargo Housing Market Index.