There is a lot of chatter in my circles that suggest we may be entering a period where mortgage rates fall enough again to spur another run on refinances. The trend has been something taking shape over the last 6 weeks but the excitement came among a couple of pricing improvement's made by lenders yesterday. The last time we were able to offer rates as low as 3.25% for a fixed Rate Loan (05/27/2011) was back in the summer of 2009 when a surge of refinance applications over whelmed the industry due to employee shortages. This time people in the know are noticing a behind the scenes hiring drive by many of the big Banks and Lenders. This suggest they might be ready to lax rates enough to make affordability even more attractive to home owners and home buyers this summer.
Some are saying rates for short term fixed mortgages such as the 5 and 10 year notes may fall into the 2.750-2.99% range and a Government (USDA,VA,FHA) 15 or 20 Year Fixed Rate Loan could be in the 3.250-3.500% range. This remains to be seen but it would be a really good thing for the over all economy if that were to happen.
The key is to control the origination's so as not to overwhelm the people who are processing files for these lenders. That is the thing that keeps lenders from lowering rates suddenly to increase volumes. So it would appear a hiring run of service personal and the lack of cut backs in the loan originator area along with the recent slowly downward movement in pricing could be the signal that they ready to slowly drop those even lower.