Take home mortgage interest rates predictions with a grain of salt this year, because there are more factors at play than market forces this year. In the good old days, when everyone knew one another personally, and your bank manager had probably watched you growing up, mortgage rates predictions were a simpler affair.

Mortgage rates predictions were a simple calculation of the supply of capital, which was only available from banks, and the demand from prospective borrowers. Banks operated on conservative practices, limiting the availability of mortgage finance. Prospective borrowers would scrimp and save for years to amass a down payment as proof of their ability to repay the loan, before making an application. Looking at all the factors together, we were dealing with a smaller and lower-risk mortgage market back then, making mortgage rates predictions simpler.

These days, the landscape is rather different and so are mortgage rates predictions. Mortgages are now being given to people who would never have qualified in the old days. A systemic increase of risk like this will inevitably impact on mortgage rates predictions.

While it may seem like a good idea to keep the economy rolling along on borrowed funds lent to people who can’e really afford them, secured by assets that aren’t really worth their book value, it’s really only a good idea when the economy is strong and growing, which means it’s not a good idea at all, actually. It is simply naive to think that an economy could possibly continue to be strong and growing continuously without experiencing any corrections whatsoever.When the inevitable slowdown arrives, as it will, you will have to pay the mortgage rates predictions piper.

Homeowners with existing loans – and that is most of us – will be watching the mortgage rates predictions with interest. After years of high interest rates, most home owners are paying more interest than the current mortgage rates predictions. Check out the current mortgage rates predictions, and you might find that you are paying too much – call a mortgage broker today.

Don’t be dismayed by the dire reports on TV. Imagine what a difference it would make to the course of your life if you could cut your monthly mortgage payment in half, or even reduce it by one quarter! If you have a higher mortgage payment than you need to have, you are just throwing money away. Make the temporary low mortgage rates predictions into a permanent benefit by refinancing now. The unprecedented level of political interference in the banking system has created a situation of low interest rates which has never been seen before.

Making home mortgage rate predictions involves some uncertainty. While nobody would argue against the political interference in financial markets designed to stave off global recession, it does have the impact of making mortgage rates predictions less accurate. However you slice it, though, this much is clear. Mortgage rates are really, really low right now. According to mortgage rates predictions, circumstances have conspired to create the perfect time to refinance at a lower rate. If you are currently meeting your mortgage payments, this is a rare and valuable opportunity to reduce them dramatically.

Mortgage rates predictions have sunk to new lows this year, on the back of government manipulations of the money markets. Of course, we are all in favor of market manipulations that just might save the US financial system from total collapse – I’ll bet the Communists are laughing behind their hands right now – but the downside of market manipulations is that they make mortgage rates predictions somewhat less than straightforward.

Real interest rates are the nominal interest rates less the rate of inflation. Nominal interest rates are the mortgage interest rates quoted by banks and other lenders – the percentage rate per annum which you will pay the lender as interest.

Why does an academic exercise like calculating real interest rates matter for mortgage rates predictions?

The answer is simple – mortgage rates predictions will take into account tensions between the current real interest rate and the normal, or sustainable real interest rate. If the real interest rate is below normal, mortgage rates predictions will trend upward. If the real interest rate is noticeably above normal, mortgage rates predictions will trend downward. Economic pressures work to pull real interest rates back into the normal range, eventually.

What has confused mortgage rates predictions lately is that the government has been manipulating the money markets to hold real interest rates well below normal. In fact, real interest rates are currently negative. That is, when banks lend you money, the amount you repay is not even enough to cover the loss of value due to inflation. Mortgage rates predictions would be that banks can’t sustain those kinds of losses forever, and therefore, mortgage rates must rise.

We all watch mortgage rates predictions with the avid interest of fans at a baseball game, these days. We live in interesting times. The government is effectively printing money, so we can expect inflation to increase. At the same time, the government is holding down Federal Reserve rates and actively trading the markets to prevent nominal interest rates from rising.

Real interest rates are likely to remain negative for a while yet, which means that mortgage interest rates predictions are still looking at historically low nominal interest rates.

If you want to take advantage of the once-in-a-lifetime opportunity, lock in a 30-year morgtage at a really low interest rate, while you still can. Mortgage rates predictions are definitely going to rise, and if you have secured yourself a golden seat in the low-interest carriage, you will ride out those rises without risking a penny of your hard-earned cash.

We may never again see such low mortgage rates predictions – take advantage of the opportunity.