US mortgage applications have collapsed to their weakest level in 31 years — bad news for sellers and loan officers, but a rare opening for buyers with cash or patience.

• Applications are now lower than during the 2008 housing crash, with demand drying up at the 7.5% mortgage rate.
• Loan officers working ordinary $300,000 to $700,000 deals are getting hit hardest; the million-dollar-plus market is still moving.
• It is firmly a buyer's market, and the smart play is making lots of aggressive lowball offers well under recent comparable sales.
• Rates could fall toward 5% within three years, which would let buyers refinance and would likely push home prices back up as competition returns.

Outlook: Prices stay soft while borrowing costs are high, but the window for cheap offers closes as soon as rates start dropping and buyers flood back in.