Bank of America Mortgage Rates – Interest Rates Fall
Posted on | August 27, 2009 | 5 Comments
Bank of America mortgage rates have been eerily close to break through the 5% psychological barrier. Since the beginning of July, mortgage interest rates have flirted with the 5% line quite a few times but have not broken through. Every time daily mortgage rates get to this level, the 10 year treasury rate yield starts to increase and it pulls average mortgage rates up with it. It will be interesting to see if we see a break below 5% before the end of September.
Home loan rates are near historical lows but if we expect to see new lows there has to be a strong break of 5%. It does not look like this is going to happen because 5% has been the bottom of the trend channel for home loan rates for over three months now and the Federal Reserve Bank is adamant about ceasing to buy US Treasuries by the end of September. When the Fed stops buying Treasuries we are likely to see the 10 year yield increase which will bring average mortgage rates up as well.
Overall, Bank of America mortgage rates follow the trend of overall mortgage rates. The trend for mortgage rates has been sideways between 5% and 5.5% for quite some time. A strong break of this trend either way will decide a lot about the future of mortgage rates. A strong move below 5% and we could see all time lows very soon. A strong move above 5.5% and we are sure to move to 6% and even higher. Either way, it is still not a bad time to refinance or buy your first home.
Bank of America has been doing a great job or marketing their home loan program. You cannot go five minutes of watching financial news without seeing an advertisement for Bank of America home loans. They have also ramped up their Internet marketing as well as there are Internet ads all over the place for Bank of America services. It will be interesting to see if this extra advertising actually spurs their business and makes them the banking giant they once were.
Luckily for most home owners there is great competition out there as far as mortgage lenders. Once again, you see advertisements everywhere for these companies. Realize that you can work this to your advantage as you have many options when it comes to refinancing or buying your first home. Do not limit yourself to one or two lenders as this may hinder your ability to get an extremely low mortgage rate.
Author: Jesse Wojdylo
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5 Responses to “Bank of America Mortgage Rates – Interest Rates Fall”
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August 27th, 2009 @ 6:44 am
I noticed in your blogs, you state:
“the Federal Reserve Bank is adamant about ceasing to buy US Treasuries by the end of September.”
Is this really true? It was my understanding that the Fed recently announced they were extending, but not expanding their programs through October. Allowing for a steady phasing out of the Federal ‘qualitative’ easing program versus an abrupt stop.
August 27th, 2009 @ 6:54 am
The mortgage rates are still being manipulated by the goverment through purchases of mortgages and fannie freddie support.
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