Here are my mortgage rate predictions and trends for 2010, and how I made them. The housing market, and overall economy, have gone through some tough times lately. These have played a huge role in determining rates, as well as speculation to where mortgage rates would head in the future. Keeping the fact that these are predictions and not facts, here are my home mortgage interest rate forecasts, trends, and predictions for 2010:

Right from the start I will tell you that I predict that for the majority of 2010, home mortgage rates will be around 5.94% for a fixed rate 30 year mortgage. While this is actually a pretty good rate, home mortgage rates earlier this year were much lower, and for a small period in 2010 they will be very low as well.

The prior low mortgage interest rates from 2009 have been 4.69% or so for a 30 year fixed rate mortgage. Then rates took a little increase, as the lenders and banks became overwhelmed with applications, in order to slow the flood of homeowners looking to refinance or modify a home loan. This increase left the rates at their current average of around 5.19% which is still quite low. However, I believe that around the middle of October of this year, the rates will drop again to their prior lows.

This rate drop period I predict to last from October of 2009 through April of 2010. During this period, I think the average rates for a 30 year fixed mortgage will be around 4.69%, which is extremely low. During this time, the market will pick up even more steam, and the economy will start to show signs of life. Consumer confidence will slowly return to the housing market, less homeowners will be foreclosed on, and home prices will start to creep up again. Then the rates will be increased.

After April 2010 and for the remainder of that year, I expect home rates to jump 1.25% to an average of 5.94% nationwide, for a fixed rate home mortgage 30 years in length.

If you can wait a little while to refinance or get a home loan modification, I think you should. However, if you are at any risk of losing your home, or causing yourself financial problems through not taking action, get a home mortgage modification now. The rates are not that high, and big savings are still easily possible.

-M Petrone
www.RefinancingCondo.com

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