Interest rates on home loans are starting to push below the 7% mark, and refinancings continue to soar as a result. But mortgage lenders are worried that no matter how low rates may go, originations for purchases will stay flat.

A survey of lending rates by HSH Associates of Butler, N.J., shows that average 30-year fixed rates in many cities are hovering around 7% -- which means that many lenders are already offering mortgages below that figure.

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