Even a small reduction in interest on a mortgage can add up to a big savings. While being 100% accurate is impossible, I think we have some good information to make a mortgage interest rate prediction. Here, I will make my home mortgage interest rate predictions, and how I came to them.

Mortgage rates right now are around 5.19% for a 30 year fixed rate home loan. While that rate is nearly half of average interest rates 10 years ago, it is not the lowest it has been, or will be. Mortgage interest rates have been recently increased by .5% in order to slow demand and ease mortgage lenders and banks paperwork. Prior to these rate increases which recently happened, a 30 year mortgage could be had for a very low 4.69%. This 4.69% interest rate attracted a flood of homeowners looking to save money by refinancing or getting a mortgage modification. The mortgage lenders and banks very quickly became overwhelmed with the massive amount of homeowner applications. As a response to that, the interest rates were increased. This slowed down the incoming applications and allowed the lenders and banks to focus on their pending applications. While the rate increase made some homeowners wait, it was not big enough to prevent homeowners who truly need assistance. I think that will change though, and here is my mortgage interest rate prediction.

Homeowners should expect mortgage rates to go down to their lows of 4.69%. This will happen around October, and last through April of next year. I predict this will happen due to the mortgage lenders and banks being ready by then for a new round of massive refinancings and will lower interest rates to spur initial customers coming through the door.

Homeowners should wait if they can until the interest rates get to their lowest. Otherwise, interest rates are still very reasonable and can easily save a desperate homeowner some money. Homeowners who are struggling right now, should still look into refinancing their home loan.

-M Petrone
www.RefinancingCondo.com

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