Mortgage Rates Predictions

Ah, mortgage interest rates predictions are like a national sport just now! Everyone wants to know what's going to happen with mortgage rates. Will they go up? Well, unfortunately, yes, they will go up. When will they go up? They are edging upward now, but the big jump will come after the Federal election. The Republicans know that if mortgage interest rates blow out now, they have no hope at all of winning another term in office.

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You have until November to lock in your mortgage for 30 years at the current (historically low) mortgage interest rates. The mortgage rates predictions are all saying it will be years, maybe even a decade or two, before mortgage rates come back down to 6% again.

Why is this so?

I can point you at some pretty solid analysis, which says that the economic indicators are just about 100% pushing in the direction of higher mortgage rates - here are just a few of the articles:

Best Mortgage Rates Predictions
This one looks at historical trends as well as current factors like the Federal bail-out of Freddie Mac And Fannie Mae.

Mortgage Rates Predictions - The Canary Is Dead!
Links the financial crisis with political and military issues in a particularly hair-raising analysis of the possible direction the US might go on the world stage - have a stiff drink beside you when you read it!

Current Mortgage Rates Predictions
A simple explanation of three or four basic economic factors which influence mortgage interest rates. A good place to start for beginners.

OK, so mortgage rates predictions are rising - what does this mean for me?

Well, it's pretty simple. If you have a mortgage, check the rate you are currently paying. If it is higher than today's mortgage interest rate, refinance your mortgage, as soon as possible. If you took out your mortgage in the early 1990s, you may be paying an interest rate that is almost double today's mortgage rate!

A 30-year fixed interest rate give you certainty about your mortgage payments, but only at the cost of greatly increased payments in times of general low interest rates.

If you have  mortgage at a rate close to the current mortgage rate, you should still consider refinancing to consolidate higher interest loans into your mortgage at the lower mortgage interest rate.

You can save yourself quite a bit each month if you transfer auto loans, personal loans and credit card balances, all of which carry high interest rates, across to a loan secured by property at a significantly lower interest rate.

Set aside that monthly payment saving, though, and don't increase your lifestyle on it, because fuel prices and inflation are going to give the average houshold budget a beating over the next few years, and you want to be ahead of the curve!

You will need that extra cash in the years to come. Use it wisely.

Image: joel ogon