Weekly mortgage demand dropped despite a slight drop in interest rates. Rates haven't moved much in the last few months.

WASHINGTON (AP) — The average rate on a 30-year mortgage in the U.S. fell this week for the first time in a month, but borrowing costs for homebuyers remain elevated. The long-term rate dipped to 6.85% from 6.89% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.99%.

Signs of a cooling labor market could push mortgage rates down in the coming days, but experts aren't expecting major dips.