Mortgage Interest Rate Predictions for 2009
What will the economy do in 2009? How far will the housing market recover? What kind of mortgage rates will be offered? These are some of the most common questions among home buyers right now, and with good reason.
In this article, I've compiled a list of mortgage interest rate predictions given by a variety of experts. Most of the predictions given below are specific to the 30-year fixed mortgage.
I'll start with my own interest predictions, based on what I've seen the federal government do over the last few weeks. I would predict that the rates for fixed mortgages will hover in the 5.25% - 5.75% range for most of 2009. My prediction for adjustable-rate mortgages is a quarter of a point below that (depending on the type of ARM loan).
U.S. News
The interest rate predictions offered in this article on the U.S. News website are less optimistic than my own. Quoting the 2009 mortgage predictions given by HSH, the article predicts that rates on 30-year fixed mortgages will exceed 6% by the end of the year.
New York Times
This article on the New York Times website quotes the interest rate predictions given by the economic forecasting guru from the Mortgage Bankers Association. She said they expect to rates of 5% or slightly higher through most of 2009.
Business Week
This article by Business Week quotes sources from Freddie Mac, who predict that mortgage rates will remain relatively flat throughout 2009. They expect to see a hovering between 5% and 5.25% for most of the year. It's worth noting that Freddie Mac has a lot of influence over the rates being offered by mortgage lenders, because they buy loans from those lenders.
Keep in mind that these rate predictions pertain to best-case scenarios. Just because a lender offers a rate of 5.25% on a 30-year mortgage doesn't mean you'll qualify for it. In order to qualify for the best deals on a home loan, you'll need to meet the lender's definition of a "well qualified borrower." This means having a credit score of about 720 or higher, having a favorable debt-to-income ratio, etc.
Related Article:
How to Get the Best Rates on a Mortgage
In this article, I've compiled a list of mortgage interest rate predictions given by a variety of experts. Most of the predictions given below are specific to the 30-year fixed mortgage.
Mortgage Rate Predictions - What the Experts Say
I'll start with my own interest predictions, based on what I've seen the federal government do over the last few weeks. I would predict that the rates for fixed mortgages will hover in the 5.25% - 5.75% range for most of 2009. My prediction for adjustable-rate mortgages is a quarter of a point below that (depending on the type of ARM loan).
U.S. News
The interest rate predictions offered in this article on the U.S. News website are less optimistic than my own. Quoting the 2009 mortgage predictions given by HSH, the article predicts that rates on 30-year fixed mortgages will exceed 6% by the end of the year.
New York Times
This article on the New York Times website quotes the interest rate predictions given by the economic forecasting guru from the Mortgage Bankers Association. She said they expect to rates of 5% or slightly higher through most of 2009.
Business Week
This article by Business Week quotes sources from Freddie Mac, who predict that mortgage rates will remain relatively flat throughout 2009. They expect to see a hovering between 5% and 5.25% for most of the year. It's worth noting that Freddie Mac has a lot of influence over the rates being offered by mortgage lenders, because they buy loans from those lenders.
Not Everyone Gets the Best Rates
Keep in mind that these rate predictions pertain to best-case scenarios. Just because a lender offers a rate of 5.25% on a 30-year mortgage doesn't mean you'll qualify for it. In order to qualify for the best deals on a home loan, you'll need to meet the lender's definition of a "well qualified borrower." This means having a credit score of about 720 or higher, having a favorable debt-to-income ratio, etc.
Related Article:
How to Get the Best Rates on a Mortgage
Labels: rates
posted by Brandon at
3:17 PM
