The tax credit is over but interest rates are great

Given the choice between a 10 percent pay raise when inflation is 12 percent or a 4 percent raise when inflation is 2 percent, respondents almost always go for the bigger raise, even though it means they will lose ground, said Greg Salsbury, an executive vice president with Jackson National Life Distributors in Denver.

Rather than seizing opportunities, many people also tend to freeze up when there is too much uncertainty.

"Unemployment, the deficit and the overall economy are impacting people's decisions disproportionately," Salsbury said. "There are a lot of things in play."

Some mortgage brokers and bankers argue against complicated explanations about why buyers are missing in action.

"The majority of my borrowers used the $8,000 tax credit toward the down payment, and the seller paid closing costs," said Marilyn McConnell, a mortgage adviser with Cherry Creek Mortgage.

Lower interest rates don't help those buyers who can't come up with the needed down payment or who are trapped in a home they can't sell without taking a loss.