Mortgage applications in the US fell in the first week of May to the lowest level since March as homeowners slowed refinancing and purchases were little changed, according to the Mortgage Bankers Association (MBA).

The MBA’s index of applications to purchase a home or refinance a loan dropped -8.6% to 895.6 in the week ending 8 th May, from 979.7 in the week before. The group’s refinancing gauge fell -11% while the purchase index gained +0.5%.

Potential buyers may be waiting to see if property values fall further even as borrowing costs close to record lows make it easier to purchase homes. The unemployment rate rose in April to the highest level since 1983 and credit remains tight, indicating a housing market recovery will be slow.