subject: How Right Was The Mortgage Interest Rate 2010 Prediction [print this page] Home Mortgage interest rate is a thing on which the entire real estate market depends. If they are down then more and more people will purchase the property and if they are up then most of the people will find it quite hard to buy such properties. If you will recollect the period before recession then you will understand that the loan rate was about 5 to 6%. This was in case of the fixed rate home mortgage and for modifiable rate it was even less. In fact the rate was between 3 to 4%. Thus home mortgage rate was definitely quite less. Let us see what happened in the year 2010.
In the year 2009 it was being forecasted that the mortgage interest rate will certainly increase a lot in 2010. But this was certainly not the case. However this was a common belief. The professionals realized that lots of unemployment forms were being signed and the homebuyers were not spending their wealth due to the thin budget.
Due to this reason it was predicted that the interest rate will not rise by much in the year 2010. The fact was that for the first time in the history the people were not going to be affected by the inflation. The inflation rate was found to be just 0.19%. This led to a real boom in the field of real estate. The people have again started purchasing the houses and lands as the interest rates have not been affected.
You are still going to get the 30 year fixed ARM at the rate which is as low as 4.25%. At that time as well you have to pay around 4.25% interest rate. However do not get puzzled by the terms rate of interest and the mortgage rate. Both of them are similar and in most of the cases you can use them as a substitute of the other. But you should keep in mind that the mortgage rate is the interest rate in case of real estate only.
Thus the prediction of the experts that the loan rates will remain the same was found to be true. There was definitely not much difference between them in the year 2010 and 2008. Hence the real estate market is again witnessing a booming period and the people are again happy. Have fun!
