re: Number of Home sales plummet...Prices of homes sold hit another record high.

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Whats really complicating this is the number of houses that have <3% interest rates that have no inclination to neither move nor sell.

Those mortgages are costing the banks a lot of money, and with a liquidity crunch going on at the moment there's not a lot of room to compel/give the homeowners a hair cut and buy them out.

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I refied almost 2 years ago into a 2% 15 year mortgage. I have NO incentive to refi again or pay off early. 2% is practically free money. Wife has a small pension that covers the monthly note and we are both still working so you are absolutely talking about my situation.

Just wish I had cashed out all the equity when we refied and just invested it in an index fund!