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The last three years have surely been some of the scariest times to be a homeowner.  The well-documented sharp increase in home sale prices between the early 2000s and 2007 has been followed by a continuing 3 year correction, bringing house prices right back down to near the levels they were at when the run-up started.  I would surmise that for most homeowners, the safest course is to stay in your home and wait this correction out. 

The government has been acting in a limited fashion to try to buck this trend and spur some buying activity in the real estate market.  Lawmakers initiated a tax credit for homebuyers that recently expired, but have also exerted their influence to keep mortgage rates as low as possible.  Right now, the average rate in the DC area for a 30-year fixed rate mortgage is a little over 4.5%.