Despite high housing costs and a limited supply of homes for sale, many people are out house hunting. 

The typical U.S.  homebuyer's monthly housing payment hit an all-time high of $2,538 as average weekly mortgage rates rose to 6.39% after five consecutive weeks of declines. The new high comes in spite of the median home-sale price dropping 2.6% from a year earlier during the four weeks ending April 16, the biggest decline in over a decade.

Elevated housing costs are one reason would-be homebuyers are backing off: Pending home sales are down 19% from a year ago, the biggest drop in nearly three months, and mortgage-purchase applications declined 10% over the last week. Buyers are also limited by the shortage of homes for sale, with new listings down 21% as homeowners stay put to hang onto comparatively low mortgage rates.