| Predicting mortgage interest rates can be tricky. We | | | | enough that homeowners just looking to save money, |
| do have some good information to work with though | | | | with no real financial hardships, held back on applying |
| and make a good prediction. Here are my 2009 and | | | | until rates were lower again. This rate of 5.19% is still |
| 2010 mortgage rate predictions, and how I made them: | | | | low enough to help homeowners save themselves |
| Early in 2009, home mortgage interest rates were | | | | form defaulting on their mortgage, or being foreclosed |
| around 4.69% for a standard fixed rate 30 year | | | | on and losing their home. This is still a good rate to |
| mortgage. These were some of the lowest recorded | | | | refinance or get a home loan modification. So right |
| interest rates in history, and homeowners across the | | | | now, a typical 30 year home loan will have a 5.19% |
| country saw the low rates and took advantage by | | | | fixed interest rate. This is where my predictions come |
| refinancing or loan modification. Mortgage lenders and | | | | into play. |
| banks became flooded with applications from all types | | | | I predict that mortgage interest rates will again be |
| of homeowners, and had to do something to slow | | | | lowered to their prior lows of around 4.69%. This will |
| down the massive amount of paperwork that was | | | | be sometime around the middle of October this year |
| piling up. A mortgage rate increase of .5% took effect | | | | and should last until April 2010. October of this year will |
| around May of 2009, which was expected. I thought | | | | be just about when mortgage lenders and banks |
| this would happen as a way for mortgage lenders and | | | | catch up with the prior applications, and be ready for a |
| banks to catch up with the already filed applications. | | | | new wave. If you can wait a little you should, however |
| This rate increase was minimal enough to still allow | | | | if you are risking your home or finances, take action |
| truly struggling homeowners a chance to refinance, but | | | | now. |