Freddie Mac says new mortgage applications are at recent lows due to three main reasons: First, the refinance boom is over. Most people who can refinance already did so. Rates do remain low so if you haven’t refinanced or couldn’t before because of value, please consider it now before rates go up. Second, Home sales are slowing down. Buyers are resisting the prices in this real estate market and so properties are staying on the market longer or not being sold. Last, many of purchases are all-cash. Yes, the cash buyers are still around. The buy to rent market is not as attractive at these prices but there are people who foolishly think that despite a low cash flow return, they can still make their money on appreciation. The flippers are still active and looking for cheap purchases, mainly distressed properties. The number of distressed properties are dwindling and slowing appreciation means flipper’s returns are getting squeezed. You can’t argue with the numbers, there are just fewer loans to go around.