Mortgage Rate Predictions For 2009-2010

Mortgage rates have been everywhere this year but have risen recently. Homeowners who can refinance or modify your mortgage when interest rates are low, support for saving the most money. Here are my predictions for the mortgage rate for 2009 and how I came to them:


Although it is considered the low point, now mortgage rates for a typical fixed rate mortgage of 30 years is around 5.19%. This is somewhat higher than earlier in the year when mortgage rates were 4.69% for the same loan. However, there is a reason that the fees were increased, and a reason to swallow back again.

I think that mortgage rates were increased due to the wave of homeowners who applied for a refinance when the interest rate was 4.69%. This led the banks and mortgage lenders to quickly become overwhelmed with paperwork. Consequently, interest rates were increased by .5% to stem the tide of the uses of the homeowner. This rate increase was enough to cut the flow of uses, but not enough that the homeowners in need save their homes through refinancing can not do so.

I predict that mortgage rates will fall again to their previous lows of 4.69%. I think this will happen around October this year, and these low rates will last to at least April 2010. These low rates will almost certainly encourage a new wave of homeowners looking to refinance. Prepared to lenders and mortgage banks better this time around to handle all applications. The homeowners must wait several weeks if they can, and look at the drop of rates make his move after the refinancing. Otherwise, if your in danger of losing their home, now take action. The longer you wait, the worse the situation will get.