Basically, prospective home buyers were hedging their bets in the days leading up to the extension, leading to a temporary falloff in activity in the mortgage pipeline.

And what a drop it was – mortgage applications plunged 4.7 percent, to their lowest level in more than a decade, the MBA reported.

New home construction and building permits also fell off markedly in the uncertainty leading up to the decision by Congress to extend the home buyer tax credit, which had been set to expire at the end of November, into the spring.

Maybe it’s a sign that the home sales rally is losing steam, though I don’t think so given the latest round of past and pending home sales numbers. (Pending sales, a sign of future activity, were also up in 27 percent in October, according to the Massachusetts Association of Realtors.)

Rather, it’s another indicator of how important the tax credit has become to driving demand in a market where rising unemployment and a gloomy economy are exerting a strong, downward pull.

I tend to lean towards the idea the tax credit has been a savior for the market, but the growing evidence of addiction also leaves me uneasy as well.

The housing market is increasingly dependent on the federal government right now, not just with tax credits to drive home buying demand, but a range of mortgage rate and debt subsidies as well.

At some point, Uncle Sam is going to have to step back and start letting the market walk on its own.

But it’s going to be one painful process - and I bet it’s one that is likely to get punted down the road again come spring.