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A dearth of new home listings is hampering mortgage demand even as the benchmark home loan rate continues its downward trajectory, according to data released by the Mortgage Bankers Association (MBA), The Hill reported. The Mortgage Composite Index, which measures the volume of mortgage applications, decreased by 4.1 percent from a week earlier, MBA’s data showed. Mortgage rates for nonconforming loans dropped by 5 points from last week to 6.40 percent while fixed mortgage rates for jumbo loans exceeding $726,200 increased to 6.36 percent. “Spring has arrived, but the housing market is missing the customary burst in listings and purchase activity that typically mark the season. After four weeks of increasing purchase application activity, volume declined a bit this week even with another small drop in mortgage rates,” MBA chief economist Mike Fratantoni said. He noted that entry-level loan purchase applications also declined last week, adding that affordability could be an issue for first-time buyers. “We do expect strong demand from first-time homebuyers over the next several years given the large number of millennials hitting peak first-time homebuyer age, but affordability remains a real challenge in this environment,” Fratantoni said. A recent report from the National Association of Realtors shows that older generations hold an edge over their younger counterparts, making up 39 percent of the purchase market in 2022. The share of millennial buyers fell to 28 percent from 41 percent in 2021.