Bank of America Refinance Mortgage Rates – All Time Lows Coming?
Posted on | September 21, 2009 | 1 Comment
Bank of America refinance mortgage rates could be heading to an all time low very soon. The Federal Reserve Bank has worked very hard to keep interest rates near an all time low and now we are seeing a down trend in the 10 year treasury yield. The 10 year treasury yield was in a strong up trend for the entire first half of 2009. Now that the yield has rolled over and is heading lower we are likely to see mortgage interest rates test new lows very soon.
The lowest level we have seen for mortgage rates is 4.78% for the 30 year fixed rate mortgage. This number actually happened earlier this year and there is a good chance that we could see similar rates in the near future. If the 10 year yield continues to drop through October then it would be hard not to see mortgage interest rates getting back down to the 4.75% level. If it doesn’t happen before the end of October we might not get to see it at all.
The Federal Reserve Bank has made it apparent that they want to stop buying US Treasuries by the end of October. This was actually extended from the end of September. There is a chance that we could see another extension but we have to go with what we know now. If the Fed stops buying treasuries by the end of October we are likely to see an up trend in treasury yields which will move mortgage rates higher.
Once again, no one knows if the Fed will stop buying treasuries at this point but that is the statement they have made. This leaves the entire month of September and all of October for the 10 year yield to fall. While the 10 year yield is falling mortgage interest rates are going to fall as well. No one knows how sharp of a fall we will see but we will see declining mortgage rates.
If you have been thinking about refinancing now is a great time to get started on your mortgage application. There are many mortgage lenders out there, including Bank of America, that are advertising mortgage rates under 5%. Get started and see if you can lock into a historically low mortgage rate before the Fed stops their purchases of US Treasuries.
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Author: Jesse Wojdylo
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One Response to “Bank of America Refinance Mortgage Rates – All Time Lows Coming?”
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September 21st, 2009 @ 12:06 pm
Beware of Bank of America. They have a horrific track record of telling you they will finance (or refinance for that matter) your mortgage, be with you the whole way, and then pull out at the very last second. I know many people this has happened to and Bank of America is pulling a scheme. Not to mention that many of their loan officers do not know what they are doing. My dealings with Bank of America were pitiful, unprofessional and they were extremely unethical.