As usual FLU and Esmith are the most accurate in this thread. FLU believe it or not, about the reworks you have identified, I know someone who is in the middle of one right now at terms very similar to what you mentioned. Please note these are only available for reworks. Also there are ramifications such as a 5 year period on that 2% but a delay is a delay is a delay.

As Esmith mentioned many people with plenty of equity are simply passing on selling the homes they are in. Even those without it are doing the same thing. We will continue to see more of this behavior over the next year.

Also price drops are meaningless if the house was not priced aggressively to begin with.

I doubt we are even close to capitulation yet but like kewp said, it will come… not sure when but it will come.