Home Mortgage Refinance Loan Rates – Predictions, Trends and Forecasts Cloudy for the Future of Home Interest Rates
Posted on | January 24, 2011 | No Comments
Over the last several years it has been the case that the federal reserve bank is taking every necessary step to keep interest rates very low. With homeowners looking for the lowest possible home mortgage refinance loan rates there have been many opportunities for mortgage lenders throughout the country. Unfortunately, predictions, trends and forecasts can be very cloudy as the Federal Reserve has been one of the main reasons interest rates have stayed low.
Many analysts feel that as the economy improves there’s a very good chance that interest rates could move higher quickly. The federal reserve bank has stated many times that they are going to stop the actions to keep interest rates low as the overall economy recovers. With this being the case there’s a very good chance that we could see 30 year fixed mortgage rates much higher than 5% in the near future.
At the present time homeowners are seeing 30 year fixed rates around 4.75% and 15 year fixed rates around 4%. When looking at historical chart of rates is quite obvious that we are very close to all-time lows which offers great savings to those looking to go to the refinance process in January or February of 2011.
Rather than waiting for mortgage rates to drop even more it may be a wise decision to go ahead and take advantage of the current low refinance opportunities. By continuing to wait there is a possibility that the economy could improve quickly which in turn could send mortgage rates much higher making it hard to save money by refinancing.
While no one can make a 100% accurate interest rate prediction we can look at the past and see that when the federal reserve bank allows markets to set interest rates that the overall economy dictates where these mortgage rates go. With this in mind please be aware of the fact that mortgage rates could move toward 6% the economy drastically improves.
Author: Mike Garner
Tags: home mortgage interest rates > Home Mortgage Loan Rates > home mortgage refinance loan rates > Interest Rate Predictions > interest rate trends > interest rates forecast
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