Home Mortgage Refinance Loan Rates – Interest Rate Predictions and Forecasts Still Hard to Decipher with Fed Actions
Posted on | November 22, 2010 | No Comments
As the Federal Reserve Bank continues to work very hard to keep interest rates low it is quite hard to decipher what will happen when it comes to interest rate predictions and an interest rate forecast. At the present time we are seeing home mortgage refinance loan rates around 4.35% for the 30 year fixed mortgage but that is up from 4% earlier in November.
Unfortunately, it continues to be hard to make mortgage rate predictions as the Federal Reserve Bank has a very strong influence on the overall interest rate market. Since the credit crisis that has been the case that the Federal Reserve has taken every step possible to keep interest rates near historic lows. The 30 year fixed mortgage rate hit an all-time low of 4% earlier in the month of November.
When the federal reserve bank stops their actions of keeping rates low and will likely be the case that interest rates move up and move up quickly. While this could be a scary thought to many of those looking to refinance in the near future it is important to recognize that the Fed will likely not stop their actions until the overall economy has improved.
With the unemployment rate still around 10% and millions of Americans exhausting their unemployment resources it is highly unlikely that the economy will improve very quickly. It will be a very slow process as the job market needs to improve and companies need to start hiring the way they did prior to the credit crisis in subprime mortgage crisis.
Over the next several months it will be very interesting to see if Americans continue to take advantage of these currently low refinance mortgage rates. Some homeowners have had the ability to save hundreds of dollars on a monthly mortgage payment but it is important to understand that only the best borrowers were received mortgage interest rate quotes below 5%.
Author: Jeremy North
Tags: Home Mortgage Loan Rates > home mortgage refinance loan rates > Interest Rate Predictions > interest rates forecast > Mortgage Rate Predictions > mortgage rates forecast > mortgage refinance rates
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