Mortgage originators that have been quietly trimming heads the past two months may want to call back some of their laid off workforce. Tuesday morning, the yield on the benchmark 10-year Treasury was down in the low 3.2% range compared to almost 3.8% a few weeks back. It's no secret why rates have been falling: the devastating earthquake in Japan and ensuing sell off in stocks both overseas and here. (When stocks fall, so do interest rates.) With home prices continuing to soften in most markets, lower rates translate into increased affordability. Yes, the 'spring home buying season' has started, but will consumers pounce or will fear set in?
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