Predicting where mortgage rates are headed in 2009 can be a little tricky. Especially lately, the financial markets that directly effect the mortgage rates are in chaos. There are a lot more people facing foreclosure which scares the banks. Luckily for you, the Government has poured billions of dollars into financial lenders at near 0% interest rates. The trickle down effect from this has mortgage rates right now currently at all time lows across the country. With the banks getting money to lend at next to nothing, they can pass the savings on to you in the way of a low mortgage rate. Mortgage refinancing applications have skyrocketed in recent months as homeowners look to take advantage and refinance in to a better mortgage with better terms, rates, or conditions. This leads us to try and predict where mortgage rates will head in 2009. Keep in mind the further into the future you try to predict the bigger margin of error there will be. The next few months will be a great source of information as to where mortgage rates will be headed. If foreclosures are not as high as expected due to people being able to refinance into a better mortgage, or if less people default on their mortgages than anticipated it could make mortgage rates go up. However, if people foreclose at the expected rate than look for mortgage rates to stay the same or even drop a little more. The government will not allow the housing market get much worse without injecting billions of more dollars if necessary. Even should they have to do another round of bailouts this should definitely be enough to cover all foreclosures and loan defaults and let the housing market restart with fresh footing. Good luck out there whatever you do. Once you get a refinance mortgage quote you like, shop those exact numbers around and see who can better it.

-M Petrone

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