Bank of America Refinance Mortgage Rates – Rates Move Up
Posted on | October 8, 2009 | 2 Comments
Bank of America refinance mortgage rates have been below 5% since the beginning of September but there is a chance that we could see rates move up towards the end of October. The Federal Reserve Bank plans to conclude their purchases of US Treasuries by the end of the month which is likely to cause at least a short term rally in treasury yields. The 30 year fixed rate mortgage and 10 year treasury rate yield have a very strong correlation so if we see yields move up mortgage rates are likely to follow.
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Throughout the summer the main reason that mortgage rates remained above 5% for most of the summer was the fact that the 10 year treasury rate yield was completing its up trend that began in December of 2008. When the treasury yield rolled over we saw mortgage rates make a beeline from 5.5% all the way down to 4.85%. Now we are seeing the 10 year treasury rate yield find support at the 200 day moving average in the same month that the Federal Reserve Bank plans to stop buying treasuries.
There is a good possibility that the 200 dma is going to hold and treasury yields will start a rally to the 50 day moving average. The current 10 year yield is at 3.18% and the 50 dma is at 3.47%. As you can see there is plenty of upside potential for the 10 year yield. If the yield moves all the way up to the 50 day moving average then you can expect to see mortgage rates around 5.25% or higher.
Bank of America has positioned itself very well for any movement in mortgage rates. The banking giant has spent a great amount of money advertising their home loan division. You cannot do a google search for anything mortgage related without seeing a Bank of America home loans advertisement. This same is true for watching CNBC. Almost every commercial break has a Bank of America ad in some form or fashion.
Only time will tell if the amount of money spent on marketing will pay off for Bank of America. One thing is for certain, Bank of America has many eyes seeing their offers for mortgage rates and that cannot be a bad thing if a refi boom is upon us. Even if rates start to increase Bank of America is still going to benefit by getting new customers through their doors whether it is for bank or a home loan.
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2 Responses to “Bank of America Refinance Mortgage Rates – Rates Move Up”
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October 8th, 2009 @ 9:53 am
After reading the news on how grest Bank of America mortgage rates are It made me think that now would be a good time to refinace and pay off my high interst credit cards and pay my medical bill. So that is what I did 7 (seven) months ago. I still am not any close than I was in April. I have had to fax all my information (3) different times to (3) different loan officers at (3) different places
and still it looks like I am headed to a 4th time. Have gotten no answers other than it takes longer now days ??? Any suggestion would be helpful I think I have just about everyone at Bank of America’s e-mail address, so I could contact any body but who has the answer
November 11th, 2009 @ 4:18 pm
Hello Just a follow up from oct 8th Here it is Nov 11th and I have heard from my Loanperson at Bnak of America They hard to do another apprisial because the other one was over six months old. Bank of America found a New Company with cutrate fee’s to do the second apprisial Guess what my Home which is only 4 years old has dropped in value by $35,000 WHOA
when I asked what was going on I was told that the way the market goes. But the price droppes by a fifth in just days. If Bank if America had been a litttle quicker all would have been well. Now after paying for the second apprisial I do not think i can afford to pay them closing cost. I wouldn’t have any money left to pay off my bills What a racket If you wnat to get the short end of the stick and the shaft up the Call Bank of America they will be happy to help you out. They have had lots of practice on me Rocky