Loan demand for purchase and refinancing applications dropped last week, as credit remains tight. Overall mortgage applications fell by 7.3 percent for the week ending May 10, the Mortgage Bankers Association reports in its weekly mortgage market index.

Applications for refinancings dropped 8 percent during the week, while the purchase index — viewed as a leading indicator of future home sales — fell 4 percent, the MBA reports.

“Low interest rates have attracted new buyers and persuaded many home owners to refinance their mortgages,” The Wall Street Journal reports. “However, tightened credit restrictions still bar many borrowers from filing loan applications.”

The MBA reports that the average 30-year fixed-rate mortgage last week rose to 3.67 percent from 3.59 percent the prior week. Also, 15-year fixed-rate mortgages averaged 2.88 percent, rising from a 2.81 percent average the previous week.

The luxury home market is gaining momentum, with prices rising and many areas where upscale housing once struggled now turning into a seller’s market, according to the Institute for Luxury Home Marketing.

“Prices have been trending up fairly strongly since the beginning of the year,” Laurie Moore-Moore, the institute’s founder, recently told the Chicago Tribune. “Inventory has been tight, though we’re starting to see a little growth in inventory again. It’s not stock-market driven, not necessarily. When you look back at the housing-market downturn, the low point probably was in 2007. Typically, a downturn would be driven by high mortgage-interest rates, but this time it was the whole real estate market that crashed. And at that time, the number of wealthy people in America actually declined, and the number of wealthy households is an extremely important driver of demand.”

But by 2010, there were nearly as many wealthy households as before the downturn, with affluent households recovering fairly quickly, Moore-Moore says.

“This group focused on residential real estate as a pretty desirable asset — for them, a second or third home turned out to be a portfolio play,” Moore-Moore notes. “Driving the recovery, we’ve had record low interest rates and a perception of bargain prices and then we’ve had this very affluent group saying, maybe real estate is a smart buy.”

The high-end markets flourishing the most are Baltimore; Charlotte, N.C.; San Francisco; and Washington, D.C., according to a monthly analysis by the Altos Research data firm on behalf of the Luxury Home Marketing. The report tracks 31 ZIP codes with the highest median prices.

But not all luxury home markets are gaining momentum, according to the report. For example, some luxury markets are considered stable, including Atlanta, Los Angeles, Miami, Las Vegas, Denver, and Dallas. Also, luxury-home markets are still seeing prices fall in areas like Chicago, New York, Seattle, and Orlando.

Inventories of homes for sale nationwide increased 4 percent in April, but remain 13.5 percent lower than last year’s inventory levels, according to realtor.com^®’s latest report.

The number of homes for sale remains particularly tight out West. Inventories have dropped the most — more than 52 percent compared to a year ago — in Orange County, Calif. In Oakland, San Jose, Los Angeles, and Stockton, Calif., inventories of for-sale homes were down more than 40 percent year-over-year in April, according to the report, which reflects listings from more than 800 multiple listing services nationwide.

With tight inventories, asking prices are on the rise across the country. Nationwide median asking prices rose 2.6 percent in April, and were 3.1 percent higher than last year’s levels.

California posted some of the largest jumps in asking prices too. Oakland, for example, had the largest median asking price increase in April, climbing 47 percent over a year ago. Other big gainers for asking prices also include: Santa Barbara (+47%), Sacramento (+40%), San Jose (+35%), and Los Angeles (+34%).

Buyer demand remains strong and homes are spending less time on the market. On average, homes were on the market in April for at least 81 days, down 2.4 percent from March and a drop of 11 percent from a year ago.

REALTORS^® who gathered in the nation’s capital Tuesday received reassurances from the director of the newly created Consumer Finance Protection Bureau about the vitally important place of real estate in the nation’s economic well-being.

“We are united by the desire to put financial and mortgage markets on a sustainable path,” Richard Cordray told thousands of REALTORS^® at the kick-off event of the NATIONAL ASSOCIATION OF REALTORS^® 2013 Midyear Legislative Meetings & Expo. “The nation can’t become stronger if people can’t make sound decisions about their lives. We’re here to help people ask questions and make those decisions.” The agency is charged with educating and empowering consumers concerning a range of consumer finance matters, from bank accounts to credit reporting and mortgages. He noted that the agency must find a balance with regard to protecting consumers and ensuring access to credit. “The American consumer is better protected today. The market has cleaned up its bad practices and bad actors,” but he noted, “They could come back. The rules we make will restore confidence in the housing and mortgage markets.”

NAR President Gary Thomas, in his welcoming remarks, rallied the attendees, acknowledging that their perseverance through difficult times has paid off. “You earned your stripes by ensuring that the American dream of home ownership was not buried in the wake of the financial collapse,” he said.

Many of the 9,000 REALTORS^® attending this week’s meetings will meet with members of Congress and federal regulators to address real estate issues that are critical to the economic health of their communities. They will be advocating for improving the safety and soundness of the FHA without hurting the consumers it was established to help, encouraging the return of private capital to mortgage markets while ensuring a continued role for the federal government, and protecting tax incentives for home ownership.  To reinforce the message on the Hill, REALTORS^® will be wearing lanyards that include the message “Home ownership is not a loophole.”

At the forum, REALTORS^® learned they will soon able to respond to legislative Calls for Action from their mobile devices, making it easier than ever to stay politically engaged. NAR is launching an improved REALTOR^® Action Center mobile app that takes advocacy to a new level as members can ensure on a moment’s notice that their voices are heard on critical real estate issues.  The app, currently available for iPhones, contains timely information about NAR public policy efforts and can also be used to make RPAC investments. The app’s Android version should be ready by the end of May, while tablet versions for Apple and Android products should be available in early summer. Find out more at REALTORActionCenter.com.

NAR leaders also recognized two of the association’s federal political coordinators for their outstanding work representing REALTORS®’ interests before their members of Congress:  Fran Davis of Minneapolis, who is the FPC for both U.S. Senators from Minnesota, Al Franken (D) and Amy Klobuchar (D); and Gail Hartnett of Boise, Idaho, who is the FPC for Rep. Mike Simpson (R).

Before wrapping up, NAR leaders shared some key findings so far from the association’s REThink strategic planning initiative, which was launched last year to gather input from a wide array of members on the association’s future vision. Among the issues that members would like to see opened up for further discussion are the three-way agreement among the local, state, and national associations, pathways to leadership, and the role of MLSs. A REThink workshop held earlier in the day was filled to capacity and in response to the enthusiasm in the room, NAR leaders scheduled a second workshop for Wednesday to give more members a chance to participate. The new session will be held at 1:30 p.m., Eastern Time, at the Blue Room in the Omni Shoreham Hotel.

The average American spent a total of 28 hours sitting in traffic last year, according to INRIX, a traffic information group. But residents in some of the nation’s most congested cities spent nearly double that—an average of 42 hours a year—sitting in traffic.

In its 2012 Traffic Scorecard, INRIX compared the average of the drivers’ actual speed on the road during peak hours with the average speed of drivers when there was no congestion.

Here are the 10 cities with the worst traffic, according to the study:

1. Los Angeles

Congestion score: 28.8

Average commute time: 28.6 minutes (15th highest)

2. Honolulu

Congestion score: 26

Average commute time: 27 minutes (the 27th highest)

3. San Francisco

Congestion score: 23.5

Average commute time: 29.2 minutes (tied for 10th highest)

4. Austin

Congestion score: 20.7

Average commute time: 25.8 minutes (45th highest)

5. New York

Congestion score: 19.9

Average commute time: 34.9 minutes (the highest)

6. Bridgeport, Conn.

Congestion score: 19.1

Average commute time: 28.3 minutes (18th highest)

7. San Jose, Calif.

Congestion score: 17.6

Average commute time: 24.8 minutes (65th highest)

8. Seattle

Congestion score: 17.6

Average commute time: 27.6 minutes (22nd highest)

9. Washington, D.C.

Congestion score: 16.4

Average commute time: 34.5 minutes (2nd highest)

10. Boston

Congestion score: 14.7

Average commute time: 29.2 minutes (tied for 10th highest)

A strengthening housing market helped Freddie Mac’s profits climb from January through March. The government-sponsored enterprise (GSE) earned $4.6 billion in that time period.

For the past six quarters, Freddie Mac has turned a profit. Also, it has requested no additional federal aid from taxpayers.

About $170 billion in tax revenues have been spent to shore up Freddie Mac and Fannie Mae. The companies have repaid $62.2 billion of that so far.

Freddie and Fannie are required to turn over any quarterly profits to the government.

The improving housing market has led to fewer delinquent loans, which has helped Fannie and Freddie curb losses. The GSEs do not issue loans but purchase mortgages from banks and other lenders, and guarantee them against defaults. Fannie and Freddie own or guarantee about half of all U.S. mortgages.

Individual home buyers comprised a quarter of all house purchases last year, according to National Association of REALTORS® data. Single women purchase homes at double the rate of single men, according to the data.

However, solo buyers can face particular challenges in qualifying for a mortgage. During and following the recession, banks tightened their underwriting standards, which also made it more difficult for single home buyers without dual incomes to qualify for a loan.

Between 2010 and 2012, home purchases made by singles dropped 7 percent — unprecedented, according to NAR. Low mortgage rates and high home affordability have drawn more singles back to home buying.

Home purchases are often a means of self-expression for singles, Jennifer De Vivo, a real estate professional in Orlando, Fla., told MSN Real Estate. “It’s a way for singles to express their lifestyles and values,” De Vivo says. “They are able to focus on the exact communities, home styles, and features that cater to their individuality with much less compromise.”

For single buyers who outgrow their first homes, some experts encourage them to keep the properties as investments.

“I always counsel them to try to keep their current home as an investment property and rent it out. It’s a big step toward helping them create long-term financial security,” De Vivo says.

Foreclosures rates are falling, but some states are still battling high levels. According to nationwide averages, the foreclosure inventory as of March represented 2.8 percent of all homes with a mortgage — that’s down from 3.5 percent in February.

In CoreLogic’s latest report reflecting March data, the following five states posted the highest foreclosure inventories (as a percentage of all mortgaged homes):

• Florida: 9.7 percent
• New Jersey: 7.3 percent
• New York: 5 percent
• Maine: 4.4 percent
• Illinois: 4.4 percent

Meanwhile, the five states with the lowest foreclosure inventories were:

• Wyoming: 0.5 percent
• Alaska: 0.7 percent
• North Dakota: 0.7 percent
• Nebraska: 0.9 percent
• Montana: 0.9 percent

Officials in Bradford County, Fla., are posting permanent signs in red outside of homes of convicted sexual predators in local communities. The “public notice” signs include the name of the convicted sex offender and the words “…is a convicted sexual predator and lives at this location.”

So far, the county has posted 18 of the signs since last month. Nearby Baker County began a similar program a year ago.

Bradford officials say this is how they’ve chosen to follow a mandate by the Florida Department of Law Enforcement, which says officials must notify the community about a sexual predator’s presence. The law does not say how that notification must occur, however. Other places often use fliers or Web sites to notify community residents.

The signs have had mixed success in other cities. For example, a Kansas appeals court in 2009 overturned a judge’s decision, with the appeals court ruling that notification signs posted on the home and car of a past sex offender are not permitted.

Some Bradford County residents have praised the city’s move to add the signs to residences, while others say it goes too far by harassing people who already served jail terms and submitted to the public registry.

“I think it’s a lot of bull,” Brian Speer, who was convicted on charges of molestation in 2004, told the Associated Press. “I believe that anybody that has any criminal background should have a sign in front of their house if we have one in front of ours.”

The signs are only posted for those who have been convicted of first- or second-degree sex crimes, such as molestation or sexual battery. Not all sex offenders are sexual predators.

“I know the predators are not real fond of it,”Joey Dobson, Baker County sheriff, told the Associated Press. “I understand, but I think it’s important for the community to know where these people live.”