HousingWire's Morning Radar takes a look atÂ Monday Morning Cup of Coffee.
Mortgage rates after likely to grind lower as originators continue trying to attract the marginal borrowers who are increasingly less responsive. Last week, rates dropped to their lowest point ever.
Originators with significant infrastructure such asÂ Wells FargoÂ adjust their capacity to meet demand, itâ€™s still a process that takes months to conduct.
Barclays CapitalÂ points out that originators could hire a significant number of temporary workers. However, the firm says, most prefer to keep critical tasks such as credit decisions with in-house employees, and training those employees is a time-consuming process.
â€œWe believe that originators will take time to ramp up their capacity, precluding a sharp drop in mortgage rates in response to the drop in the current coupon,â€ analysts at Barclays say.
â€œIn the meantime, rates are likely to grind tighter as originators continue trying to attract the marginal borrowers who are increasingly less responsive, given that a new lifetime low in mortgages rates has been almost continuously on offer for more than three years," they concluded.
Read moreÂ at HousingWire.