Mortgage Rates Drop Again – Will There Be Another Refi Boom?

Mortgage rates have dropped significantly in the last month, down below 6%.  The common wisdom is that the Fed will drop rates again, likely leading to even lower mortgage rates.  Will this lead to another refi boom?  Not soon, according to industry experts because the continued tightening of the mortgage lender standards.  While interest rates are low tempting the "A" borrowers, most of the alt-doc and subprime borrowers cannot take advantage of these low rates because of more stringent qualifications.   Also, most howeowners who are strapped to high payments have very little equity and cannot refi.  Until inventories shrink and prices start rising again, it is doubtful we'll see a huge refi boom.