| Mortgage rates are near all time lows right now, which | | | | refinancing for some, and will make refinancing cost |
| is great for homeowners looking to refinance. | | | | more for everyone. This rate increase is a good |
| However, I predict that throughout the rest of the year, | | | | indication that the economy is improving but will |
| mortgage interest rates will rise. Here are my | | | | ultimately mean that homeowners who refinance will |
| mortgage interest rate predictions for 2010, and how I | | | | pay higher interest rates, no matter the situation. I also |
| made them. | | | | predict that the increases will start sometime in April of |
| Right now a 30 year fixed rate mortgage can be | | | | 2010, and gradually increase throughout the end of the |
| obtained for around 5% interest rates. This is very low, | | | | year, resulting in a 1.75% increase. I think that this will |
| and half of what interest rates were just 10 years ago. | | | | happen because of a better housing market. Millions of |
| The mortgage rates are so low due to a bad | | | | people are getting mortgage refinancing's and saving a |
| economy, a bad housing market, and Government | | | | lot of money by doing so, this is leading to an improved |
| stimulus plans. Rates need to remain low to stabilize | | | | housing market, and homeowners with a little more |
| the market, enable homeowners to right their financial | | | | money. This means that interest rates are inevitably |
| situations, and avoid foreclosures and defaults. The | | | | going to increase as mortgage lenders and banks look |
| low rates are enabling many people to get a mortgage | | | | to increase profits. |
| refinancing that will save them money, their home from | | | | Homeowners should take action now and get a |
| being lost, or both. There are actual signs that | | | | mortgage refinancing at the current near record low |
| homeowners are getting help, and that the housing | | | | interest rates. The longer people wait to refinance a |
| market is recovering. This means that interest rates will | | | | home loan, the more expensive it will get. Do not wait |
| rise. | | | | for interest rates to get any lower, they are not. Take |
| I predict that mortgage interest rates will rise by 1.75% | | | | action now and refinance a mortgage before it gets |
| by the end of 2010. This is not a dramatic increase, but | | | | more expensive. |
| is enough to negate the benefits of mortgage | | | | |