Mortgage Rate Forecasts, Trends, and Predictions for 2010
Mortgage Rate Forecasts, Trends, and Predictions for 2010
Mortgage rates are the key to getting the best refinancing possible. If you are able to get a lower interest rate, you will be able to save money and get more affordable monthly mortgage payments. For most of 2009, mortgage rates have been low, however I think that will change. Here are my mortgage interest rate predictions for 2010.
Right now, a typical fixed rate 30 year mortgage can be obtained for around 4.99% in interest. While this is still very low, earlier in the year rates were .3% lower. However, it is only this low right now because of market conditions, a struggling economy, and mortgage bailout plans from the Government. With so many homeowners having a hard time with finances, interest rates needed to be reduced to their present levels to stimulate the housing market. Also, low interest rates have given many homeowners a way to save their home from being lost by refinancing the mortgage into a better, more affordable, monthly payment. However, I expect things to change. Here are my mortgage interest rate predictions for 2010.
I believe that around April of 2010, mortgage rates will increase. While it will not be anything drastic, it will be enough for homeowners to notice. I think that interest rates will rise by around 1.25% or so, which would mean a typical home loan would be at a 6.2% or so. This is still much better than rates were just 5 or 10 years ago, but will be a big enough increase to make refinancing not a beneficial thing for many people. I think that the rates will increase due to a rebounding housing market, and a recovering economy. While I do not think things will be as prosperous as they once were, I do think 2010 will be a huge step in going back to a stable housing market and economy.
Homeowners who are looking into mortgage refinancing should consider making the move sooner rather than later. Getting help and good interest rates is easy. Contact a mortgage lender or bank today and see how much you can save in interest every month on your home loan payments.
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Category: Rates
