Exactly what potential home buyers do they think are still out there. Most of those who would have been buyers at this period of time (in a normal market) were enticed to buy 2 years ago. A large portion of those buyers were pulled from future buying demand at that time, so we are currently going to have below average demand no matter what the interest rates or home prices are. Those who were smart enough not to buy in the bubble, are smart enough not to buy now either.