More and more people are becoming discouraged over applying for mortgages. Mortgage applications fell last week. CNN Money reports that refinancing accounted for part of the drop:

Refinance volume declined 8.9%, pushing total volume lower. Refinance
applications accounted for 46.1% of total applications, down from 48.2%
a week earlier.

It is getting harder to get a second home mortgage right now, since mortgage lenders are wary of declining home values. They are concerned that they will approve a home equity loan, and then the home will decrease in value and create a situation of negative equity.

Also causing possible borrowers pause: increasing mortgage rates. Mortgage interest rates are on the rise, despite the decline in mortgage applications.