Home Sales Lukewarm, As Mortgage Applications Decline

Not so fast, home sellers. The rush to buy a house is a nonstarter so far this spring. As evidence, the latest mortgage application figures show a 0.7 percent drop in volume last week, according to the Mortgage Bankers Association. Despite a fall in 30-year fixed-rate interest rates to 4.79 percent from 4.93 percent, the pool of home buyers is stagnant. Refinancing is picking up, however, as evidenced by the 0.9 percent rise in the Refinance Index. While home affordability remains high, home sales continue falling in many areas.

Home builders have been enthusiastic, as AOL Real Estate reported. But there is little activity to back up their enthusiasm.

For more on mortgages and related topics see these AOL Real Estateguides: