Mortgage interest rate predictions are not the easiest thing to make. However, we do have some good information to work with that makes predicting interest rates for 2010 a lot easier. Here are my home loan interest rate predictions for 2010 and how I made them.

Right now a typical 30 year fixed rate mortgage can be had for around 5% which is near an all time low. This low interest rate is the result of a struggling housing market and economy. Another thing keeping interest rates low is a $75 billion housing stimulus plan enacted by President Obama. Low interest rates are needed right now to prevent more foreclosures and mortgage defaults. Since the rates are so low, many existing homeowners can easily save a lot of money, and their home, by getting a mortgage refinancing. In addition to just having low rates, there are also new options available because of the Obama stimulus plan that make refinancing a home mortgage easy for nearly any homeowner.

However, interest rates constantly change and I predict that later in 2010, home mortgage interest rates will increase. While the predicted rate increase will not be huge, it will be big enough to make refinancing a mortgage not beneficial to some homeowners, and cost every homeowner more money. I think that the housing market has seen its worst days and tings will be steadily getting better throughout the year. As the housing market and overall economy improve, interest rates will rise due to less people struggling. I predict that around June of 2010, interest rates will rise by around .5%. This is not a dramatic increase but makes refinancing less beneficial than it is now. I also predict another rate increase of anywhere between .5% - .75% that will happen around October of this year. These combined rate increases will bring the current interest rates up from 5% to around 6% - 6.25%. While this rate is still extremely low, it will make refinancing a home mortgage more expensive and less beneficial.

Homeowners should take action now and take advantage of the low interest rates that are available. There has never been a better time to get into a new home loan. Millions of people are struggling to make their monthly mortgage payments and are at serious risk of losing their home. Do not let that happen and get a mortgage refinancing today before the interest rates increase.

-M Petrone
http://www.RefinancingCondo.com

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