This morning the Wall Street Journal opines in a blog entry:

Mortgage Rates Set New Record at 4.69%, So Why Is Demand Weak?

As I myself survey the housing market, I often ponder this very issue. The WSJ makes some interesting observations: many who could refinance have already done so – and many who have not done so are underwater on their mortgages and so can’t refinance to take advantage of low rates.

As for new home buyers (who I am mostly concerned with), the Journal points a steady finger at the economy. There’s no job growth fueling household formation, and thus demand for housing remains weak.