Bank of America Refinance Mortgage Rates – Current Rates Drop
Posted on | September 29, 2009 | No Comments
Bank of America refinance mortgage rates are getting very close to all time lows. The average for 30 year fixed mortgages is at 4.92%; with just a few days of sharp drops we could be very close to the all time low of 4.76%. With the 10 year treasury rate yield down trending there is a strong possibility that new lows could come in the month of October. After Halloween it is highly unlikely that we will see all time lows attainable.
After Halloween the Federal Reserve Bank plans to stop purchasing US Treasuries. When they cease to buy up US debt there is a strong chance that there will be an increase in treasury yields to make our debt attractive to foreign investors. No one knows how high the yield will have to go to be attractive but it is going to have to go much higher than the current 3.3%. We will need to see China and Japan sink a great amount of money into US debt to moderate yield rates.
One of the major worries of some analysts is the whiplash effect we could see with mortgage rates. The Fed has been doing everything in their power to keep rates artificially low so what is going to happen when they take their hand out of the pot. After October the Fed will stop buying US Treasuries and by the end of the first quarter 2010 the Fed is going to stop buying mortgage backed securities. When this happens, what will happen to mortgage interest rates?
Bank of America and Wells Fargo have been advertising home loan rates extremely hard as of late. It will be very interesting to see if these marketing efforts pay off in the long run. Many borrowers are looking to small banks and lenders because they do not want to work with a company that is “too big to fail.” There is little doubt that these companies will continue to make money but will they return to pre-crisis levels.
With mortgage interest rates remaining near all time low levels it is to your advantage to refinance at these low rates. If you have been thinking about it and have been on the fence, now is the time to take action and lock into low rates. There are many lenders advertising low rates so take the effort and contact these lenders to see what rate you can get.
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Author: Jesse Wojdylo
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