In my opinion, and that's all it is, there's room for a tightening of margins, given where wholesale markets are. I'd like to see 10 year rates well under 3% before fixing for a longer term.
I think we'll see 3 year rates settling around 2.2 - 2.3% mark, and then that rate being made available for longer terms rather than banks dropping headline rates below 2%.
KBC were offering a 10 year rate just under 3% in early 2008. Wholesale rates have dropped a lot since then, but mortgage rates haven't followed yet.