Bank of America Mortgage Rates – 5% Levels Being Tested
Posted on | September 2, 2009 | 2 Comments
Bank of America mortgage rates are getting extremely close to testing the 5% floor that has served as a support level since the end of April. This psychological level has been tested at least three times since the run up in mortgage rates that occur in late April and early May. Each time 5% is reached we see a strong move in the 10 year treasury rate yield and it forces the 30 year fixed mortgage rate to move back towards 5.5%.
This time things may be a little bit different. For the first time in 2009 the 50 day moving average is actually heading down with the 10 year yield under the moving average. The 50 dma is likely to serve as a point of resistance any time the yield tries to make a strong move higher. With this being the case there is a very good chance that we will see 30 year mortgage rates finally penetrate the 5% level.
Will mortgage rates under 5% help Bank of America as a company? Bank of America will benefit from this because of the increase exposure and excitement of the housing market. You are likely to have seen Bank of America’s marketing efforts in the form of Internet and television advertisements. It is hard to turn on the television and not see a Bank of America home loans ad. The same is true on the Internet; you cannot go to a mortgage website and not find a Bank of America mortgage rates ad.
With this strong marketing effort, Bank of America is positioned to benefit greatly from the steep decline in mortgage rates. If you do see mortgage rates under 5% there will be a great increase in Internet traffic to Bank of America’s website. This is very appealing to the banking giant because many of the home owners who want to refinance may also want a new banking partner. Bank of America offers many financial services so this is a great time to “sell” those services to prime borrowers.
Bank of America mortgage rates going under 5% would benefit not only home owners but Bank of America as well. The great increase of interest would help the largest bank in America to introduce some of its other financial services to new and existing customers. This is exactly what Bank of America wants as we are digging out of this recession.
Author: Jesse Wojdylo
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2 Responses to “Bank of America Mortgage Rates – 5% Levels Being Tested”
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September 2nd, 2009 @ 10:15 pm
Check out http://www.obamamortgagerelief.org/ There needs to be a program for the elderly but not quite to retirement age for mortgage modification when the have lost their job during this particular recession. I made a decent wage because I put my time into a company and now have no job. I am looking at $10 – to $12 hr jobs after working all my life. You can’t make a mortgage payment on that kind of money. I will eventually lose my home.
September 5th, 2009 @ 11:22 am
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