Homeowners most common question for 2009 is “Where will mortgage rates go this year?” While no one can be 100% sure as to where mortgage rates are headed, we can examine recent trends in the economy of the United States and try to make an educated guess.

There are a lot of mortgage lenders who are currently advertising mortgage rates under 5%. However, this is only going to be available to a select few applicants who have 20% or more to put down on their mortgage with a FICO score over 700. Most Americans do will not get these rates for both of these reasons, so do not feel left out. However, currently 30 year fixed mortgage rates are hovering near an all time low of 5.25% or so all across the country. Again, a homeowner must have a good credit rating and monetary backing to obtain these rates. So with that now known, where will the mortgage rates head in 2009?

So if rates are currently at 5.25% and have been declining steadily for the past 2 months or so, why would that change? Wouldn't the rates continue to go lower? These would seem like logical guesses however the housing markets work in illogical ways sometimes.

Over the past few weeks mortgage refinance applications have increased by over 45% so their has been quite a strain put on mortgage lenders to handle all of these applications. Some lenders have even increased their rates in order to stem the rush of incoming mortgage refinance applications. So the overall trend is definitely pointing towards even lower mortgage rates, however there may be brief rate increases from lenders themselves as they rush to complete the huge mass of refinancing applications.

You should keep an eye out for the current mortgage rates and recognize when rates have artificially wen up a little bit due to weeks of amazingly low rates. Be sure to pay attention to the small increases in mortgage rates as usually there will be a decrease again in a few more weeks.

-M Petrone
www.RefinancingCondo.com

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