Mortgage rates are at historically low levels, but it's hard to take advantage.
The pendulum seems to swing too far sometimes. Banks have tightened lending standards dramatically after doling out easy money in recent years.
It's no news that refinancing is slow and difficult these days. Unfortunately, these low rates will not last forever. As government programs designed to keep rates low come to a close, loans will get more expensive. We don't know exactly when it'll happen, but it's coming.
Critics of the banking industry argue that lenders are not pulling their weight in economic cleanup efforts - hoarding cheap money and using it for other purposes. Also, it doesn't take an economist to see that lower rates (and lower monthly payments) would allow consumers to spend more. Of course, they'd also be able to repay their home loans.
Nobody wants a return to the overpending and irresponsibility of the last decade. However, it seems like banks are passing up a lot of win-win opportunities.
Further reading: