For the third week in a row, according to the Mortgage Banker's Association, mortgage applications are down. Additionally, mortgage rates are down, which did increase the refinancing share of new mortgage applications. Combined, this data seems to reflect that buyers are not flocking into the real estate market.

Ironically, however, new home sales were up in March more than 13%, the biggest increase in 13 years. Additionally, the National Association of Realtors reported better than expected existing home sales. (more)

Still, the real estate market does seem to be slowing, but not as much as many analysts have expected. Moreover, many so-called bubble markets continue to see higher than expected home price appreciation.

Yes, it is taking longer to move inventory and incentives are helping to move those homes that are selling, but a huge drop in home prices doesn't appear to be near.

Need a mortgage broker?