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

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

The housing market just refuses to stop.

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.

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.