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Mortgage Rate 2010 Forecast – Was It True

Todays Date: December 10, 2018

Mortgage rate is one thing on which the real estate market depends. If they are low then more and more people will buy the property and if they are high then most of the people will find it quite difficult to buy these properties. If you will remember the period before recession then you will realize that the loan rate was around 5 to 6%. This was in case of the fixed rate mortgage and for adjustable rate it was even lower. In fact it was between 3 to 4%. Thus mortgage rate was definitely quite low. Let us see what happened during 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.

That is why they forecasted that the home mortgage rate will not rise by much in 2010. Now it was all up to the administration. The history was about to be made. The fact was that for the first time in the history the people were not going to be affected by the inflation. And this really happened. 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 properties as the rates of interests 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!

Larry Martinez is a registered California Mortgage Advisor. He offers excellent deals in San Rafael Mortgage. He can be reached at 415-258-1691

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