Here are my mortgage rate predictions, trends, and forecasts for the rest of 2009, and a few months into 2010. When a homeowner gets the lowest interest rates they can, they are saving the most money possible. With mortgage refinancing and home loan modification on the rise, a lot of homeowners would benefit from having an idea of what to expect from interest rates. Here are my predictions, and how I made them:

-Right now 5.19% is the average mortgage rate for a typical homeowner and a fixed rate 30 year mortgage.

-Mortgage rates were as low as 4.69% for the same loan earlier in the year.

-I predict that in October of this year, 2009, mortgage rates will drop from 5.19% to their prior lows of 4.69% for a 30 year fixed rate home loan.

Why do I think mortgage rates will drop to 4.69? I think that the only reason that mortgage interest rates went up .5% to their current rates of 5.19%, is due to mortgage lenders and banks being overwhelmed by the amount of homeowners looking to take advantage of the low interest rates, and the Governments mortgage bailout plan. The combination of these two things quickly drew the interest of millions of homeowners who applied for a mortgage refinancing or modification.

My predictions reflect the fact that I think that around October of this year, 2009, the mortgage lenders and banks will be caught up with the existing home loan modification and refinancing applications. At this point, they will be looking for a new wave of homeowners who need a more affordable mortgage. The interest rates, I predict, will be lowered to their prior lows to spur interest in mortgage refinancing and home loan modification.

If a homeowner can, they should wait a little to see if the mortgage rates lower a little. However, if your home is at risk of being lost to foreclosure or mortgage default, take action now.

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