Bank of America Mortgage Rates – Will Interest Rates Go Down?
Posted on | August 18, 2009 | 1 Comment
Please use Subprime Blogger to get all of your Bank of America mortgage rates information.
Bank of America mortgage rates follow overall mortgage rates and that has been quite an adventure lately. During the month of August, we have seen quite an amazing ride for mortgage rates. We have been as low as 5.05% and as high as 5.5% and everywhere in between in just three short weeks. The question most home owner and future home owners want to know is “will interest rates go down?”
That is a very hard question to answer as there has been a tug of war going on between the government and the markets. Every time Bank of America mortgage rates get up to 5.5% the Federal Reserve Bank makes a speech about how they are going to continue to do whatever it takes to keep mortgage rates historically low. When this speech is made, it is often the case that average mortgage rates start to drop all the way down to 5%.
When daily mortgage rates hit 5% we start to see the markets set interest rates. Almost every single time mortgage rates have been around 5%, the 10 year treasury rate yield starts to uptrend bringing Bank of America mortgage rates much higher. This have been happening for quite some time now and the only thing that is going to stop it is if the government takes their hand out of the pot and actually lets the market set interest rates.
The one bit of good news we have heard regarding this is that the Fed is going to stop buying US Treasuries by the end of September. If this is truly the case, it is likely we are going to see another push higher by the 10 year treasury rate yield which will send average mortgage rates much higher. That being said, I have thought this to be the case for quite some time now and every time interest rates edge up, the Fed makes another announcement. We will truly see if they take their hand out of the pot or not.
The one good thing about the current mortgage market is the fact that interest rates are still be advertised at historically low levels. You have probably seen advertisements for mortgage rates well under 5% all over the Internet and television. You will never know if you can get access to these rates if you do not contact the companies. Most of the ads direct you to a website or representative to give you information so it is at least worth a shot, right?
Author: Jeremy North
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October 10th, 2009 @ 12:54 am
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