For the entire year of 2009 we have seen mortgage rate trends head south; this should continue into the future as the Federal Reserve continues to buy mortgage backed securities.
Ben Bernanke and the Federal Reserve Bank have been adamant about buying back mortgage backed securities. By doing this, mortgage rates are going to continue to fall. There is no way that the government can put TRILLIONS of dollars into mortgage backed securities and rates rise. The overall trend for mortgage rates has been down for quite some time and there is little evidence to prove that this will change anytime in 2009.
Mortgage rate trends are very important to some individuals because it gives them an opportunity to gauge the correct time to refinance. If you can time it out correctly, you could save over $10,000 over the lifetime of a mortgage loan. There are not many financial gurus out there that have been successful at making mortgage rate predictions, but there are some!
Overall mortgage trends and mortgage rate predictions go hand in hand. If the trend is up, it is likely that predicting the future of mortgage rates will follow the trend. The old adage is "the trend is your friend." With the current trend in mortgage rates being down, there is absolutely no reason to buck the long term trend and predict that mortgage rates are going to go higher for an extended period of time. It is likely that we will see weeks in which there is a bounce in mortgage rates, but it seems highly unlikely that the overall downtrend will be broken with the government doing everything they can to keep mortgage rates under 5%. Some are even predicting that the government will force rates to under 4%.
Subprime Blogger is your mortgage news source for the current events affecting the mortgage industry as a whole.
Subprime Blogger offers several articles on mortgage rate trends that can help you save a great deal of money if you decide to buy a new home or refinance.
