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A recent CNBC article examined the nation's rapidly declining mortgage rates and relayed that they may soon stop their downward trend.
During the last several weeks, interest rates for the nation's home loans have reached record-low averages, some unseen for nearly 50 years. While the lower rates mean greater affordability for potential homeowners, banks may soon put an end to the offerings.
"[Banks] don't have to go lower on the rates to get business, because they make more money if they don't go to the lower market rate," Guy Cecala of Inside Mortgage Finance told the news source. "It's also a way to manage a potential flood of [refinance] calls."
Another financial expert agreed with this assessment, claiming that banks have become overwhelmed with the amount of applications submitted by homeowners looking to refinance their mortgages in order to take advantage of the current low interest rates.
In previous weeks, close to 80 percent of mortgage applications submitted involved refinancing. This percentage has fallen recently, as the article believes many homeowners have already refinanced. However, the article states that if rates fall below 4 percent, banks should expect to see even greater refinancing activity.
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