Predicting mortgage rates for 2009 is not as hard as it would seem to be. Here are my predictions for mortgage rates for the remainder of 2009, and part of 2010. This will help you know when the best time is to refinance or get a home loan modification in 2009.

Mortgage rates right now are around 5.19% for a typical 30 year fixed rate home loan. Earlier in 2009, mortgage rates for the same loan were around 4.69%. This .5% difference, seems small, but could make a big difference in the savings a homeowner would get overall.

I think that earlier in the year, the rates were so low due to the bad housing market, and the struggling economy. Mortgage rates dropped as a result to spur interest in the housing market. When the rates dropped, the amount of applications from homeowners looking to refinance skyrocketed. Mortgage lenders and banks quickly became overwhelmed with paperwork from desperate homeowners. As a result, the mortgage rates were increased to where they are today, around 5.19%.

However, I think that we will see another rate drop again this year. It is only a matter of time before the lenders and banks catch up with all the refinancing applications. Once they do, around October or so I predict, the mortgage rates should drop again. I expect the rates to drop to their prior lows of 4.69% for a typical mortgage. This will generate a whole new wave of interest from homeowners looking to save money, or their home from foreclosure. I think that the 4.69% mortgage rate will last until April or so of 2010.

Homeowners wanting to get a refinancing or mortgage modification should wait a few months, if possible, to see just how low the rates will go. Otherwise, if your facing losing your home or other financial problems, take the plunge and refinance now. While I think rates will get lower, the rates available now are certainly not considered high at all, and a lot of homeowners can take advantage by refinancing their home loan.