A forecast of 30-year mortgage interest rates.
This paper provides an analysis of 30-year mortgage rates, and explores what the future predictions are for interest rates on these loans. The paper attempts to explain the methodology behind the predictions on interest rates of this nature and patterns that shape this analysis. The paper uses past interest rate fluctuations, regressive analysis, the professional opinions of other analysts, and common sense deliberations, but points out the possible failings of such a study.
“In predicting the mortgage interest rate for 30-year loans for coming few years, we can see how the recent events of September 11, 2001 have caused a dramatic reduction of interest rates on Mortgages. Although the rates have been, in past years, standardized at an average of 7-9% for mortgage loans, and the dramatically lower 3% (in the months after the attack) average for interest rates for mortgages is now in clearly being applied with fluctuations into the 5% range. The projection in this study will seek to predict a steady rise to 6% percent in the coming years for interest rates for 30-year mortgages in the loan servicing business. By creating a methodology, which can determine the past patterns of mortgage rates before September 11th, we can surmise the fluctuation of these patterns within the economy, and the rates that are being applied by the loan standards for interest rates in America.”