Until about 2 weeks ago, predicting mortgage rates had been simple for almost a full year. Recently though, home mortgage interest rates have spiked. Before this spike, a home mortgage could be obtained for around 4.9%, now though, the average is around 5.3%, this is not good news at all for current and potential homeowners.

I actually expect this to be the tip of the iceberg as the economy is facing hyper inflation from Obama printing money like its fake. The mortgage lenders need to make up for the heavy losses they are incurring from the housing crisis, and record number of foreclosures and mortgage defaults.

So, my prediction is that home mortgage interest rates will continue to rise, although at a slow pace, to around 5.9% by the end of this year. That means homeowners should refinance or modify their home loan now, and potential home buyers should pull the trigger and act before the rates rise again.

-M Petrone

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