2010 Mortgage Interest Rates
By Michael Petrone
Getting the lowest interest rates possible makes a refinance more beneficial for a homeowner. Mortgage rates have been low most of the year. However, I predict things will change in 2010. Here are my mortgage rate predictions for the rest of 2009 and 2010.
While the housing market is in bad shape right now, mortgage rates are low to encourage activity in the market, and help homeowners save their home from being lost. With rates as low as they are, homeowners can usually refinance their mortgage into a better, cheaper, more affordable monthly payment. This helps prevent the housing market from getting worse, and spurs activity and interest in existing home loans, and for new home buyers. However, I do not think the housing market will get any worse than it is right now, and that is why my mortgage predictions for 2010 call for an interest rate hike.
While this mortgage rate increase will not be major enough to seriously discourage homeowners from getting refinancing, they will be noticeably higher. Right now, a typical fixed rate mortgage can be had for around 5.15%. This rate is extremely low, and not too much higher than the lowest rates have been all year. However, I believe that around April of 2010, things will change, and interest rates will rise slightly. I predict that mortgage rates in April of 2010 will rise to around 6.2% due to a recovering housing market, and a promising economy. These mortgage rate increases will represent progress being made in stabilizing home values for homeowner everywhere across the country. Although it seems small, this would represent a lot of money over the course of a home loan.
Homeowners who can, should take advantage of the lowest mortgage interest rates possible when they decide to refinance their mortgage. In my opinion that time is right now, as I predict interest rates to rise. However, each homeowners situation is different, and the time to take action may be too. While there is no proof mortgage interest rates will rise, the housing market has pretty much bottomed out, meaning the only way to go is up. Decide for yourself what is best, but these are my mortgage rate predictions for 2009 – 2010.
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