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Bank of America Refinance Mortgage Rates – Interest Rates Bounce Higher

Posted on | October 23, 2009 | No Comments

Bank of America refinance mortgage rates have been extremely low since the beginning of September but we have seen a recent bounce higher in mortgage interest rates.  The conventional 30 year fixed mortgage rate is currently up to 4.88% while the 15 year fixed is up to 4.31%.  When looking at historical mortgage rates you can see that these rates are still extremely low but are we seeing a strong bounce?

The 10 year treasury rate yield hit strong support at the 200 day moving average and has bounced higher.  This was quite predictable as we at Subprime Blogger saw this coming as the Federal Reserve Bank made an announcement that they were going to conclude the purchase program of US Treasuries in the same month that treasury yields hit their 200 day moving average.

A short term rally was predicted but the long term trend cannot be determined until we see what happens at the 50 day moving average.  Currently the 10 year yield has moved above its 50 dma but it has to put some move might higher than the 50 dma to start a long term up trend.  If there is a day in which the yield drops drastically we could see a sideways to downward movement until yields hit the 200 dma again.  Only time will tell what happens.

If the 10 year yield starts trending much higher then we are likely to see mortgage rates move up much like they did this summer.  When the 10 year treasury rate yield almost hit 4% mortgage rates moved all the way up to 5.6%.  The yield has a long way to go before it hits 4% but it is not out of the question now that the Fed is taking their hand out of the pot.

If you have been thinking about refinancing now might be one of the best times in recent memory.  Mortgage interest rates are still well below 5% and many lenders are advertising rates this low, including Bank of America.  If you stand to gain one full percentage point on your mortgage rate by refinancing then you should take advantage of this opportunity.

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Author: Mike Garner

Category: bank of america mortgage rates

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