Mortgage Rates Forecast for October 1, 2010 – How Low Will 30 Year Fixed Mortgage Interest Rates Go?
The mortgage rates forecast for October 1, 2010 is very important as over the last several months it has been the case that many Americans are looking to save money by going through the refinance process. Many people continue to ask “how low will 30 year fixed mortgage rates go?”
Unfortunately, it is almost impossible to answer that question but at the present time we are seeing historically low 30 year fixed mortgage rates as the 30 year fixed is being reported around 4.25% from many mortgage lenders nationwide. Some of the largest mortgage lenders in the country include Bank of America, Chase, Citigroup and Wells Fargo. These are currently the big four banks that survived the credit crisis and gobbled up many of the small mortgage lenders but there are many other options available as well.
We are currently seeing the mortgage rates forecast for October 1, 2010 as very similar to today. With the 10 year treasury rate yield looking to find a bottom it may be the case that some homeowners find that mortgage interest rates move up slightly but it would be highly unusual to see the 30 year fixed mortgage rate move above 4.35% as the Federal Reserve Bank continues to take the necessary measure to make sure that rates stay low in order to help the overall economy recover. A double dip recession is something that many want to avoid so mortgage interest rates are likely to stay low.
With many Americans looking to save as much money as possible it seems to be the case that refinancing is much more popular than buying a new home at the present time. The number of refinance applications submitted completely dwarfs new home applications. This is likely to be the case because many first time home buyers are waiting for home prices to stabilize before making a huge investment. Instead of catching a falling knife they want to know that home prices are moving higher.
It is also the case that many people are looking for government tax incentives. Even though the mortgage rates forecast is projecting lower rates it is still the case that Americans want every extra dollar out of a home purchase as possible. WIth the first time home buyer tax credit expiring back in April of 2010 many buyers exited the markets. It will be interesting to see if the Obama administration offers other tax incentives to get buyers back into the market in the near future. If buyers stay absent it could be bad news for the economy.