|Because there's a possibility interest rates may fall a tad in the future. Resulting in aggressive loan officers convincing homeowners to refinance again for a lower monthly payment.|
If lender's income etc. is based on percentages, and/or your commitment is "at X% rate or the lowest interest rate within at the time you close," and/or lenders want to sell your loan at the highest profit margin .... CLOSE the loans in the pipeline now while we can still sell them at $X. There's more to it than that, but basically in a falling interest rate environment it's best to close loans fast before customers run to a "better offer by another lender" or you are stuck shelving your closed loans because they are selling at a loss or not at all on the secondary market.