Bank of America Mortgage Rates – Interest Rates Up, Up and Away?
Posted on | July 21, 2009 | No Comments
Please use Subprime Blogger to get your current mortgage rates forecast. There are also several articles to assist you in finding the best fixed rate mortgage.
Bank of America mortgage rates are sure to move up as the 10 year treasury rate yield is pushing interest rates higher. Last week we saw a 10% jump in the yield before a slight pullback yesterday. Unless the Federal Reserve Bank makes a major announcement about injected billions more into US debt, we are likely to see the yield push much higher; maybe even all the way to 4%. If this happens, Bank of America mortgage rates are likely to move up to 6%.
No matter how hard the government has tried, the market is finally setting interest rates. Two weeks ago, Ben Bernanke made TWO announcements about buying back debt in hopes of breaking the up trend of the 10 year treasury rate yield but it did not happen. Not only did it not happen, we saw a slingshot effect that began last week. Wells Fargo mortgage rates have yet to react in the way I suspect they will so it could get interesting in the next few days and weeks.
If you were waiting for average mortgage rates to drop below 5% you might be out of luck. Current mortgage rates are around 5.32% but I would be very surprised if they stay that low for the rest of the week. If you are thinking about refinancing or buying your first home, now might be a great time to start the mortgage application. If you wait a few months and don’t push the envelope, you could be seeing that fixed interest mortgage in excess of 6% very soon.
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