With the 10-year Treasury going below the 4% threshold, market fears of an imminent refinancing wave have resurfaced. Although market participants vary as to what specific threshold would tip the market over, everyone is aware that another refi spike might just be around the corner.

FTN Financial Capital Markets said that it would take the 10-year Treasury staying in the 3.80% to 3.90% range for a week to trigger another refinancing event. "That would be enough time for originators to re-calibrate their rates and give the media effect time to operate," said Walter Schmidt, senior vice president at FTN.

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