How High Will Mortgage Rates Go in 2010? Refinance Applications Surge in January?

Posted on | December 29, 2009 | No Comments

The question “how high will mortgage rates go in 2010?” is a question we have gotten a lot over the last few weeks and especially over the last few days.  With mortgage rates soaring higher there is a very good chance that refinance applications are going to surge in January.  You may think that the opposite would be true as home owners have no desire to refinance their homes due to high mortgages rates but the strong move up is the exact reason refinance applications are likely to increase.


In the month of January, the amount of home owners refinancing naturally increases but this year might be a little bit different.  Last year we were staring at mortgage rates that we low and heading even lower which lead to a very strong interest in refinancing.  This year we are looking at mortgage rates that have bounced off their all time lows and are likely to head much higher.  The psychology of higher mortgage rates is likely to lead home owners to their mortgage lenders.

For those who have even considered refinancing the proposal is even bigger now.  You do not want to be left standing in the dust with mortgage rates skying to 8% in the near future.  You will likely scramble to get that mortgage refinance application finished so you can still have an opportunity to lock in to a mortgage interest rate under 6%.  Getting the last run of low mortgage rates is likely to be the last gasp hope for some home owners.

Author: Jesse Wojdylo

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