2009 and 2010 Mortgage Interest Rate Predictions

While mortgage interest rates are low, I predict thatmarket. This plan worked a little too well, and
they will get lower. Every little interest rate percentagehomeowners quickly flooded mortgage lenders and
counts when refinancing a mortgage, and knowingbanks with applications for mortgage refinancing. This
when rates will be lowest ensures you will get the bestwas a shock to lenders as they did not expect such
deal possible. Here are my mortgage rate predictionsinterest. Mortgage rates were increased by .5% to
for 2010 and the rest of 2009.help stop homeowners form applying. This rate
With mortgage rates being around 5.19% right now,increase scared away homeowners who just wanted
many homeowners are refinancing or modifying theirto save money, yet was low enough to help the
home loans to take advantage. However, if you can,majority of truly struggling homeowners. Many people
wait. I think that around October of 2009, mortgagetook, and are taking advantage of these low mortgage
rates will drop by about .5% to 4.69% for a typical 30interest rates, and saving money and their home from
year mortgage with a fixed rate loan. While this seemsbeing lost.
low, it can really add up, or be the difference betweenPredicting mortgage rates is tricky, but I do honestly
a refinancing actually saving you money, or justbelieve the mortgage rates will drop by about .5% in
wasting your time.October of 2009, and last through April of 2010. This
Early in 2009, when the housing market was is itswill enable a lot of homeowners to save even more
worse shape, mortgage interest rates were 4.69%.money when refinancing a mortgage. However, right
This is the same rate that I predict will be the averagenow, interest rates are still low, and many
in October 2009. The rates were so low earlierhomeowners can still benefit from taking advantage of
because mortgage lender and banks wanted to helpthe low interest rates for mortgages.
struggling homeowners and spur interest in the housing