With Home Refinancing and Modification applications being turned in at an amazing pace, a common question from homeowners is “What are the Home Mortgage Rate Predictions for 2009?” Now more than ever, homeowners want to know what the housing market will bring in the future, and here is some help.

Right now all across the country, home mortgage rates can be obtained around 5%. These are some of the lowest recorded home interest rates in the countries history. They are so low due to the struggling housing market, and President Obamas “Making Home Affordable” plan. The $75 billion stimulus plan allows mortgage lenders and banks to lower interest rates in order to work with struggling homeowners. Interest rates needed to be lowered in order to return some consumer confidence into the market.

With home interest rates as low as they are now, it is hard to imagine that they could drop much lower. The most I estimate home interest rates will drop to is 4.25%, however, the prime time for that to happen is starting to fade away. With that said, I would expect to see home mortgage interest rates hover around the 5.25% mark for the remainder of 2009. This is still a much lower interest rate than has been available and homeowners who already have a mortgage can take advantage and refinance it now.

I do not predict any sharp increases in the interest rates due to the hurting housing market. Banks and mortgage lenders, as well as home builders and sellers, want to get homeowners into a home and keep them their. That is the best way for everyone to profit.

Nobody can be 100% certain which direction these interest rates will go, but we can make good estimated guesses. If you are waiting for home interest rates to drop even further, you may be out of luck. Home mortgage rates were, at one point, 4.25%, now though that the housing market has showed small signs of hope, interest rates have inched up again as lenders and banks look to recover some of their prior losses. So do that home mortgage refinance or get that home loan now, the interest rates, at least in my opinion, will not get any lower for the remainder of 2009.

-M Petrone

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