Rates can go to 3% but if someone isn't working, working part-time, or concerned about their career in this environment they aren't making an offer on a new home. I think the home buyer tax credit that expired and was renewed recently pulled demand forward resulting in a lack of buyers now. Realtors tell us that well priced listings are slowly selling but action has really slowed down in the last month. Is this simply the winter seasonal slowdown or is this another leg down for the economy at large? My guess is a double-dip recession after a disappointing holiday season. Expect another large jobs bill from congress before year end.