Mortgage refinancing can save homeowners a lot of money these day due to extremely low interest rates. However, I predict home interest rates will increase throughout 2010 and that will cost all homeowners more money if they want to refinance. Here are my mortgage rate predictions, trends, and outlook for 2010, and how I made it.

For most of the past year, home loan interest rates have remained very low. So low in fact that millions of homeowners refinanced their mortgages and saw savings of hundreds of dollars per month. Mortgage rates were kept low because of President Obamas stimulus plan, and a bad housing marker and overall economy.

In an effort to help stabilize the marker, mortgage lenders and banks kept interest rates low. In addition to that, Obamas stimulus provided over $75 billion in funding to assist homeowners, which drove interest rates down even further to around 5% for a typical 30 year fixed rate mortgage. However, times are changing and I predict mortgage interest rates will rise for the rest of 2010.

While that mortgage rate increases will not be anything too dramatic, they will end up costing homeowners more money when they decide to refinance. I predict that by the end of 2010, mortgage rates will have risen by around 1.75%. This means that a 30 year mortgage with a fixed rate will be around 6.75%. While this is still much lower than many homeowners have now, it is still 1.75% higher than current rates, and that adds up to a lot of money over the course of a large 30 year loan.

I think that the housing market, and economy, have seen their worst days. This means that interest rates will rise and that homeowners should take action now if they are looking to refinance a mortgage. Interest rates right now are extremely low and people need to take advantage. Do not wait anymore, refinance a mortgage now at near all time interest rates, before they rise.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner