Predicting mortgage interest rates has become harder every year. Typically, interest rates were predicted by calculating the amount of available capital, which was pretty much only available to qualified buyers, combined with the demand from potential homeowners, would give you a pretty good estimate. Things like a 20% cash down payment were the minimum requirements to be approved for a home loan which made predicting mortgage rates much easier, and the housing market much more stable.

Today though, things have changed and so has predicting home mortgage interest rates. A lot of people are homeowners these days, whether they can afford to be or not. With mortgage lenders and banks ditching the decades long, strong risk management aspect of approving large loans, predicting mortgage rates has become increasingly difficult.

Despite the economic problems all across the country, or peoples personal financial situations, people still wish to own a home rather than renting. This will inevitably play a big role in accurately predicting home mortgage rates.

While it may seem like approving a lot of people for large loans they would not have been capable of taking out before seems like a good strategy for boosting the economy, in reality it just makes the complete financial in a worse off situation than it was in to begin with. You can never assume that the economy will remain strong, and robust. It is actually a good idea to think the exact opposite. Remember that there are some inevitable hard times ahead. Whether at a personal level or widespread economic level, preparing for the worst is always one of the best plans.

With the ever growing risk in bad mortgages being foreclosed or defaulted on, there is little to no doubt that credit will get tighter in every market. It is almost like living on borrowed time. With all the risk, still out their, there is no doubt that the mortgage interest rates are set to rise for the rest of he year. Refinance a home mortgage or buy that new home today before it is too late.

-M Petrone

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