Let's face it, interest rates on consumer loans have come way down since the onset of the sub-prime melt-down and opportunities abound for those willing to get onto the REFI bandwagon. As the cost of financing decreases even further, assuming thet the Federal Reserve will play along, the more affordable a larger purchase may become for many a stagnant home buyer. And since the numbers are coming down, then those who purchased an ARM may have REFI on the brain in the coming months.
With 30-year fixed rates moving towards the lower end of the 5% range, those who may have purchased homes at low introductory "teaser" rates and now find themselves burdened with unaffordable payments, may be looking to refinance thier debt at a more affordable rate. However, those consumers who have mortgages that are more costly then thier real estate assets are worth may find that they are still left in the cold and may not qualify for the REFI opportunities unless additional money is contributed as a down payment.
Either way we look at this dilema, there will be opportunities for those savvy enough to look for them.