Mortgage applications are dropping, thanks to a number of factors that is making borrowing for a home less attractive. For one thing, mortgage interest rates ticked a little higher in the past week, causing some to think that perhaps the great deals are over. Even refinancing demand dropped as people began re-evaluating their situations and the interest rates.

Another factor, especially in terms of purchases, is that the first time home buyer tax credit still has not been extended. It’s fairly obvious that if you haven’t already started the paperwork by now, you probably won’t close in time for the deadline. There has been some talk of extending the deadline, but so far nothing has happened yet. Even just changing things so that paperwork initiated by the November 30 deadline would probably help home sales.

However, in the end, the bottom line is that appetite for home buying and refinancing is petering out. Mortgage rates are creeping back up, and credit requirements remains tight.