Bank of America Refinance Mortgage Rates – Yields Move Rates Higher
Posted on | November 3, 2009 | No Comments
Bank of America refinance mortgage rates have been at or below 5% for quite some time but it is very possible that treasury yields are going to move interest rates higher. The 10 year treasury rate yield hit its 50 day moving average and has bounce higher. The move has not been drastic but it has been enough to keep the 10 year yield above the all important 50 dma.
The 10 year treasury rate yield and the 30 year fixed rate mortgage have had a very strong correlation since 1971. As one goes up the other seems to follow. In 2009, the relationship has been a bit delayed but continues to remain strong. We have seen the 10 year yield move higher but mortgage interest rates do not react until a few weeks or even months later.
We saw this back in May when mortgage rates did not react for quite some time and then they shot up over .75% in one week. While this is not likely to happen any time soon there is a good chance we could see mortgage rates move up significantly if the 10 year yield continues its up trend that started in the beginning of October.
Since the up trend of the 10 year yield began in October there has been little to no movement higher in mortgage rates. In fact, mortgage rates have moved sideways to down as the 10 year yield has carved out an up trend. Once again, no one knows when mortgage rates will react but when and if they do it is likely to be a large move in a very short period of time.
Bank of America and many other mortgage lenders have been advertising mortgage rates under 5% for quite some time. If you have been thinking about refinancing or buying your first home now is the time to get off the couch and get it done! If you wait a few months or even a few weeks you might find that mortgage rates have moved up drastically and it is no longer beneficial to refinance.
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Author: Mike Garner
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