Mortgage rate predictions, are a tricky thing to figure out. However, we do have some good information to work with and make a reasonable prediction with. Refinancing or getting a home loan modification when rates are at their lowest, will save a homeowner a lot of money. With that said, here are my mortgage rate predictions for the rest of 2009, and my thought process behind them.

Recently, home mortgage rates have gone up by .5% or so all across the country. This was expected as the mortgage refinancing and loan modification lenders and banks were getting turned into them, was quickly piling up. They had to increase the rates a little to reduce the amount of new applications they received. Prior to the increase, mortgage rates were at all time recorded lows, and homeowners were very aware of that. Although the rates did increase, the increase should not be enough to prevent a homeowners from losing their home to foreclosure. Most homeowners pay a interest rate way higher than the average rate is even after the slight increase. Those low rates though, will be offered again in the near future and here is when.

In just about the middle of October or so I predict mortgage rates to drop by the same .5%, and stay there through the end of 2009, to their prior low of 4.69% for a 30 year fixed rate mortgage. This will be just about when mortgage lenders and banks have caught up with their paperwork and will be ready for new customers and another round of refinancing and modifications.

-M Petrone

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