Mortgage rates are the key to a homeowner being able to save money when refinancing or getting a home loan modification. The lower the interest rate is, the more you will save. Here, I will predict mortgage rates for the rest of 2009, and the first part of 2010.
While it is impossible to know 100% where mortgage interest rates will go, I think we have some good information to make a guess with.
I think that mortgage interest rates will drop to 4.69%, a .5% drop from the current average rates. Now this may not sound like a lot, but you must consider that interest rates are already extremely low, and 0.5% off of that, makes rates their lowest ever. I think that this will happen in October of this year. I also think that these rates should last until the middle of April 2010.
Mortgage rates are so low right now because of the struggling housing market. Mortgage rates are low to encourage growth, and restore some consumer spending in the housing market. However, another advantage of rates as low as there are now, is refinancing. Mortgage refinancing can easily save a homeowner hundreds of dollars on their home loan payment every month.
Mortgage interest rate predictions are not always exactly accurate. Homeowners should not rely on getting a lower rate in October, although I do expect it. However, interest rates are very low right now too. Mortgage refinancing would still benefit millions of homeowners, even at the not yet reduced interest rate. Otherwise, homeowners who are able to wait, should. If you can get a home loan at .5% off current interest rates, you will save a lot more money.
When the rates drop, and I think they will, you should look into refinancing your mortgage.