In the following article,”Mortgage Interest Rate Predictions For the Rest of 2009“, author Michael Petrone feels that mortgage rates will drop in October 2009. He makes a sensible argument, feeling that the banks raised interest rates some time ago by .5% in order to service the influx of refinances resulting from President Obamas “Making Home Affordable” plan, and again will lower their rates once they get caught up. It primarily speaks of home mortgages, but seems likely that it will also apply to commercial mortgages, and if so, would be welcome news for real estate investors and agents who work with rental income properties. Let’s hope so.
Here’s the article:
Here are my mortgage rate predictions for 2009. By refinancing or getting a home loan modification when rates are lowest, you are ensuring that you get the lowest possible payments. A few percentage points on a home loan can easily add up to thousands of dollars, so getting the lowest interest rate possible is important. So, here are my mortgage rate predictions for the rest of 2009.
Right now 5.19% is the average rate for a 30 year, fixed rate, home mortgage. However that is not the lowest rate it has been, or will be. Not too long ago, mortgage rates were increased by .5%, from 4.69% so that, as I predicted in earlier posts, that mortgage lenders and banks could catch up on the massive influx of refinancing and mortgage modification applications they were receiving due to the low rates, and President Obamas “Making Home Affordable” plan. The lenders and banks needed a chance to get the applications that were pending reviewed, and approved, and increasing the rates slightly was the perfect answer for them. The small increase warded off homeowners simply looking to save money, from the homeowners who truly needed help and in risk of losing their home.
This is where my prediction starts for the remainder of 2009 and early 2010. I think that around the middle of October 2009, mortgage lenders and banks will have completed nearly all received applications, and will be in need and hungry for a new round of mortgage modifications and refinancing. This means that I predict mortgage rates will drop by .5% to their prior lows of 4.69% in order to stimulate the housing market, and help homeowners lower their monthly mortgages into affordable amounts. I think that this rate will hold strong until around April of 2010. So basically, the lowest interest rates of the year, I predict, will be around the middle of October, and last through April 2010 or so.
Predicting mortgage rates can be tricky to do, and dangerous to rely on. There are no guarantees but I am pretty confident in my mortgage interest rate predictions. Homeowners looking to refinance or get a home loan modification should consider taking advantage of the low rates and attempt to hold off until the drop kicks in around October. However, if you are at risk of losing your home, or are facing tough financial hardships that need attention now, take action and do not wait any longer.
At my site I will teach you how to properly refinance or modify a home mortgage saving you thousands of dollars, or even your home. A lot of Greedy Mortgage Lenders will try to suck you dry if you let them. Learn the right way to refinance or modify your home loan at my site: http://www.refinancingcondo.com
