Mortgage Rate Trends Are Pointing Towards Much Lower Rates

mortgage rates trends

By Jesse R Wojdylo

Ben Bernanke and the Federal Reserve Bank have been adamant about buying back mortgage backed securities. By doing this, rates are going to continue to fall. There is no way that the government can put TRILLIONS of dollars into MBS 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.

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 loan. There are not many financial gurus out there that have been successful at making predictions, but there are some!

Overall mortgage trends and rate predictions go hand in hand. If the trend is up, it is likely that predicting the future of 30 year fixed rates will follow the trend. The old adage is "the trend is your friend." With the current trend in rates being down, there is absolutely no reason to buck the long term trend and predict that overall 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 most 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.

Article Source: http://EzineArticles.com/?expert=Jesse_R_Wojdylo

mortgage rates trends