Dude, sales just dropped 34% in two months. Willing and able buyers are the only thing they have very little control over. A borrower drought can be just as damaging as any other natural disaster. Of course, I have been saying that demand would eventually falter since fall of 09′, but had no idea it would be this severe. Wile E. coyote just went over the cliff. Better hope Bernake has the ACME trampoline ready.
Rates won’t go up because there is no threat of inflation. Massive shadow is still there, lingering and relevant to the big picture. Though, not necessary for bringing prices down. Inventory is a controlled variable but only to an extent.
