NEW YORK CITY-The single-family home market took another tumble in the third quarter despite bargain-basement mortgage rates and deep discounts on homes. The latest S&P/Case Shiller index shows that home prices declined by 3.9% in Q3, bringing single-family home pricing back to 2003 levels nationally.

David Blitzer, chairman of the index committee for S&P Indices, tells GlobeSt.com that these latest figures showcase that renting versus buying has become stronger than ever. “Given the general state of the economy wherever you look, it’s hard to get people to make a long-term financial commitment, and that’s what buying a house is,” he says. “While home prices are down to roughly where they were in about 2002 or 2003 and mortgage rates are probably lower than any living person’s memory, the market conditions to buy a home should be really good. Prices are down, mortgage rates are down, yet, there’s not much activity going on. That suggests to me that people are very concerned, but they still have to live someplace.”

Across the country, 17 of the 20 cities rated by S&P posted negative annual rates, including new lows for cities like Atlanta (-5.9%), Las Vegas (-1.4%) and Phoenix (-0.2%). Only New York, Washington, DC and Portland, OR—three cities with solid job growth and booming renter populations—posted positive monthly returns.