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Bank of America Refinance Mortgage Rates – Interest Rates to Go Higher?

Posted on | October 25, 2009 | No Comments

Bank of America refinance mortgage rates could to remain extremely low; even checking in below 5% at times.  With mortgage interest rates being near all time lows is it there a case to be made that we are about to see a bounce and they are going to go higher in November.  At the beginning of October, we at Subrpime Blogger predicted that the 10 year treasury rate yield was going to bounce off its 200 day moving average.

This prediction was not difficult because treasury yields were extremely overbought and there had been no bounce since the free fall from 4%.  To make this bounce even more likely the Federal Reserve Bank announced that they were going to stop buying US Treasuries by the end of October.  This was sure to help push yields higher as well.

The 10 year treasury rate yield has now seen a bounce off the 200 dma and is now about the 50 dma.  If the next level of strong resistance is this summers high then we could see the 10 year yield get all the way back up to 4%.  During the summer, as many of you may remember, mortgage interest rates shot up very quickly because yields were moving higher.  There is a very good chance this could happen again in November.

Looking at the long term chart of mortgage interest rates it does look as if there is a chance for rates to move higher.  Mortgage rates have been unable to break the 4.85% level with any strength and the Fed is slowly taking their hand out of the pot when it comes to interest rates.  It is highly unlikely that we are going to see mortgage rates shoot all the way up to 6% but we could see higher rates going into the winter.

With this in mind, refinancing now might be the best option available.  Many mortgage lenders, including Bank of America, are still advertising mortgage rates under 5% so it would behoove home owners to lock in at these rates before they are gone forever.  Once the Fed concludes all its programs to hold mortgage rates low we will not see anything close to the low mortgage rates we are seeing now.

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Author: Alan Lake

Category: bank of america mortgage rates

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