| Homeowners have been refinancing and taking | | | | 2010. I predict that sometime around April of 2010 that |
| advantage of low interest rates and Government | | | | mortgage interest rates will rise by about 1.25%. While |
| stimulus programs. However, I think in 2010, things may | | | | this seems small, it actually adds up to a lot of money |
| change in the housing market. Here are my mortgage | | | | over the course of a 30 year mortgage. This increase |
| interest rate predictions for 2010, how I made them, | | | | will make some homeowners not be able to benefit at |
| and how they will effect homeowners looking to | | | | all from refinancing a mortgage. I think that a typical |
| refinance. | | | | rate for a 30 year fixed mortgage will be around |
| Many homeowners have benefited from the low | | | | 6.25%-6.50%. Right now, the same home loan can be |
| mortgage interest rates that have been available | | | | had for around 5%. |
| throughout most of 2009. The rates have been low | | | | I think rates will rise due to a better housing market, |
| due to Government stimulus programs, a bad | | | | and a improvement in the overall economy. While |
| economy, and a struggling housing market. In order to | | | | things wont be perfect, I do think that the bottoming out |
| keep things as stable as possible, interest rates | | | | of the market has already happened. This means that |
| needed to be reduced to help homeowners. Homes | | | | there will be increased activity in the housing market |
| throughout 2009 have pretty much all dropped in value, | | | | which will bring up home prices, and help the overall |
| some by a lot. This is leaving mortgage lenders and | | | | economy. When this happens, interest rates will rise as |
| banks with foreclosed homes in their inventory that will | | | | the need to provide the absolute lowest interest rates |
| actually end up costing them money. Instead of letting | | | | to help homeowners will be much less needed. Also |
| more homes be lost, lenders and banks were more | | | | by then many homeowners will have found mortgage |
| likely to offer refinancing or mortgage modification | | | | refinancing help and options with Obamas stimulus |
| options to homeowners. In addition to the natural | | | | programs. |
| demand to stop foreclosures, the Government and | | | | While the future will be more financially stable and |
| President Obama have announced over $75 billion in | | | | secure for homeowners, it will come at the price of |
| funding for homeowner stimulus programs. These | | | | increased interest rates, and less mortgage refinancing |
| stimulus programs kept interest rates low, and | | | | options. However, refinancing a mortgage will still be |
| provided new options for nearly every homeowner to | | | | very beneficial for many people, even after the rate |
| get a mortgage refinancing. | | | | increase I predict. Homeowners who are struggling or |
| However, I do not things will be so good for | | | | considering a refinance should take action now while |
| homeowners as far as interest rates are concerned in | | | | the mortgage rates are that low. |