Bank of America Refinance Mortgage Rates – Interest Rates to 8% Says Morgan Stanley
Posted on | December 29, 2009 | No Comments
Bank of America refinance mortgage rates have been very close to all-time lows for quite some time. Just recently we have seen the 30 year fixed mortgage rate around 4.5%. During the last week of November mortgage interest rates hit an all-time low as the 30 year fixed drop slightly below 4.5% to the all-time low level of 4.49%.
Unfortunately, we have learned that a Morgan Stanley chief economist feels that mortgage interest rates are likely to move to 7.5% to 8% in the near future. The fact that the Federal Reserve has bought US treasuries and mortgage-backed securities is the main reason that he feels treasury yields are likely to move up by more than 40%.
If Treasury yields, in fact, move up this much then there is little doubt that mortgage interest rates will drastically increase. If we see mortgage rates around 7.5% to 8% it will be a great problem for the overall economy and especially the housing market. There is little argument that low interest rates are one of the main reasons we have seen home prices stabilized recently.
If it is truly the case that mortgage rates are going to increase all the way to 8% it might be a good idea to go ahead and refinance your home loan now. If you continue to wait there is a very good chance you could see interest rates move higher in the near future. It is unlikely that mortgage rates will move all the way to 8% percent quickly but there is a good chance that we could see 6% mortgage interest rates by the middle of 2010.
Bank of America and many other major mortgage lenders are currently advertising mortgage rates around 5%. If you have equity in your home and a good credit score then it would be a great idea to consider refinancing today. If you continue to wait and hope that mortgage rates fall again then you might be out of luck.
Author: Alan Lake
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