Predicting mortgage rates can be a tricky thing to do. However, I do think there is some good information to work with, and make a fairly accurate mortgage interest rate prediction for the rest of 2009, and a few months into 2010. Here are my mortgage rate predictions:
Look for interest rates to be around 4.69% for a typical 30 year, fixed rate mortgage. This should happen around October of 2009, and last through April of 2010. This is what the trends and forecasts are leading too, and signs of it becoming an accurate prediction are increasing every day. When a homeowner is able to refinance their mortgage at the lowest interest rate possible, they are getting the most savings possible. Even a little bit of difference in interest rates can have a dramatic effect on a homeowner when refinancing a home loan.
Now those are my predictions, and here is how I made them.
Earlier in 2009, mortgage rates were 4.69% for a typical home loan. This is not a far cry from the current interest rate of around 5.19%. While interest rates right now are low, when they were lower, homeowners were rushing to refinance and take advantage of the historically low interest rates. When the mortgage lenders and banks became overwhelmed with the paper work, they needed to increase the rates to decrease the amount of homeowner interest. They increased the rates by a meager .5% which was small enough to help homeowners, but enough of an increase to hold off the homeowners who just wanted to save money.
Always keep in mind that these are mortgage rate predictions , and not facts. However I think that around October of 2009, mortgage lenders and banks will be ready to take on a whole new wave of homeowners. If you can, wait a little while longer, and then refinance your home, if not, then you need to take action now, even the current rates are very low, and will probably save your a lot of money.