2009 - 2010 Mortgage Rates - Predictions, Trends, and Forecasts

Here are my mortgage rate predictions, trends, and forecasts for the rest of 2009, and a few months into 2010. When a homeowner gets the lowest interest rates they can, they are saving the most money possible. With mortgage refinancing and home loan modification on the rise, a lot of homeowners would benefit from having an idea of what to expect from interest rates. Here are my predictions, and how I made them:

-Right now 5.19% is the average mortgage rate for a typical homeowner and a fixed rate 30 year mortgage.

-Mortgage rates were as low as 4.69% for the same loan earlier in the year.

-I predict that in October of this year, 2009, mortgage rates will drop from 5.19% to their prior lows of 4.69% for a 30 year fixed rate home loan.

Why do I think mortgage rates will drop to 4.69? I think that the only reason that mortgage interest rates went up .5% to their current rates of 5.19%, is due to mortgage lenders and banks being overwhelmed by the amount of homeowners looking to take advantage of the low interest rates, and the Governments mortgage bailout plan. The combination of these two things quickly drew the interest of millions of homeowners who applied for a mortgage refinancing or modification.

My predictions reflect the fact that I think that around October of this year, 2009, the mortgage lenders and banks will be caught up with the existing home loan modification and refinancing applications. At this point, they will be looking for a new wave of homeowners who need a more affordable mortgage. The interest rates, I predict, will be lowered to their prior lows to spur interest in mortgage refinancing and home loan modification.

If a homeowner can, they should wait a little to see if the mortgage rates lower a little. However, if your home is at risk of being lost to foreclosure or mortgage default, take action now.

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U.S. Home Mortgage Trends

The trend of U.S. mortgages, and the fluctuation of interest rates of home loans are the major pillars of the economy. While there are other economic factors interest rates are largely due to decisions of the Federal Reserve Bank that tied. Interest rates are regulated by the Fed for financial affairs in such as GDP growth, export and import figures, and inflation in the United States.



Mortgage rates are used to control the economy. If the movement of the economyto be too fast, higher rates are imposed so that individuals and companies would be less willing to apply for loans. On the contrary, if the economy seems rather slow or stagnant, prices are lowered, so that people are more tempted to engage in further operations. Sun mortgage trends generally upward or downward, as the economy shrinks and expands.



Home mortgage rates trends:



And 'interesting to note that mortgage interest rateswere less than 8.5% seen from 1996, with the lowest rates of around 5.5% in mid-2005. While a person may be very different mortgage at a certain time due to other factors, to see the prices (wages or credit histories) influence, the tendency was less frequently observed that, in general, constant throughout the entire economy the United States.



The decline in interest rates the highest levels recorded before 1996 and more people to buy their homes, buyCountries or trading up to larger homes. Perhaps this reflects an effort to accelerate the economy from that time until today. But this year, mortgage rates are likely to increase as some made unwise lending decisions in an era of easy money and prizes at extremely low levels by the Federal Reserve Bank maintained for too long a period. A vicious cycle correction is now in progress with very uncertain mortgage markets.



Current Home Mortgage Rates:



The mortgage ratesfor the year 2008 is generally higher than the previous year, with rates of around 6.5 percent for 30-year fixed rate mortgage (FRM). The difference between the interest rates this year and last year are not very high, because it would take only a few hundred dollars to increase annual payments. This probably will not stop many people from getting mortgages, if growth continues, we expect that more people would be reluctant to seek home loans.

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