A typical household in the past two years saw about a $20,000 gain in equity. That's not an insignificant chunk. Homeowners see that wealth and use it to buy additional goods.

The larger declines were recorded in the high-priced markets that are more sensitive to mortgage rate changes.

The strong rise in prices cut into affordability, even with the low rates.

The housing market just refuses to stop.

Home-buying is not a snap decision -- people mentally prepare for it and search for homes, and this is a three-to-four-month process. Plus, even with the rise in mortgage rates, they're still below last year's figure and still close to 45-year lows.

You need a strong job market with people in their 20s moving out of their parents' homes before rents recover.