With so many homeowners looking to refinance or save money on their monthly mortgage, mortgage interest rates are very important. Luckily, we have some information that can help us make an educated guess as to what to expect from mortgage interest rates in the coming months. Here, are my mortgage predictions, and how I made them.

Although mortgage interest rates are low right now, I think there is still room for them to drop even further. While not by much, only .6% or so, every little bit counts. This .6% could be the difference between a beneficial refinancing or one which will actually cost you more money in the future.

The average homeowner who refinances now will get around a 5.19% interest rate for a 30 year fixed mortgage. This is unusually low, and many homeowners can save a lot by taking advantage of these historic low rates. However, for homeowners who are able to wait a little longer, I think there could be even more savings.

Sometime around the middle of October, of this year, I predict mortgage interest rates will drop. I think that rates will fall just below their lowest ever recoded rate of 4.69%, and will stay that way until April of 2010. This could be hugely advantageous for the homeowner who can wait a little longer to truly get the lowest rates possible. We are already seeing signs of slow rate drops, just as I thought would happen.

In October of this year, the mortgage lenders, banks, and brokers, will be hungry for a new round of eager to refinance homeowners. Last time rates were that low, the rush to refinance was on, and millions of applications flooded the offices of mortgage providers. This quickly led to a back log of paperwork. Now though, they are nearly caught up, and ready for more.

If you can wait, if not rates are still very low and you can probably save a lot through refinancing.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner