Personally, I think that homeowners looking into refinancing should make the move soon. Right now, mortgage interest rates are at near all time lows, and do not seem to be getting any lower. However, there is still a little time before I predict mortgage rates increase. Here are my mortgage interest rate predictions for 2010.

Right now, mortgage rates have been hovering around the 5.19% mark for a typical fixed rate 30 year home loan. However, with rates being that low, and with millions of homeowners a;ready getting help from the Obama stimulus plan, interest rates are bound to go up. While the housing market is not showing signs of turning around for the better any time soon, it is not getting worse either. This is because a lot of the struggling homeowners have taken advantage of new refinancing options and Government bailout plans. Homeowners who still had decent credit, but knew something needed to change, got into a much lower interest rate on their own before the economy went horrible.

With that in mind, here are my mortgage interest rate predictions for 2010. I think that homeowners who wait to refinance for too long will be in for a shock that interest rates have increased. I think that around April 2010, mortgage rates will jump up to around 6.15%. this sounds minimal, only 1% or so, but in reality, that 1% is the difference for many people between saving a lot of money, and not benefiting at all from a refinance. I think that the rates will rise because they can not get lower, and the housing market will improve in the coming months. With the housing market improving, the entire economy will benefit. With that, money will be flowing again, and rates will rise accordingly. Also, by April of 2010, many homeowners who were in the worst shape will have gotten relief from Government provided programs designed to aid homeowners at risk of losing their home.

Homeowners need to take advantage of the low interest rates available today and take action. While predicting mortgage rates is not entirely accurate, there are many good indications, some of which I have included here, that point to a rate increase sometime in the near future. Refinance or get into a better more favorable mortgage now while rates are low and lenders and banks are looking for more customers.

-M Petrone

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