Bank of America Refinance Mortgage Rates – Lower Interest Rates this Week?
Posted on | November 1, 2009 | No Comments
Bank of America refinance mortgage rates have been below 5% for quite a some time but is there a possibility of an even bigger drop this week? The 10 year treasury rate yield currently sits right at its 50 day moving average. This average was support on Friday but we could see the 10 year yield break down this week and go below the 50 dma.
If the 10 year yield falls below its 50 dma then you can expect lower mortgage rates from all lenders including Bank of America. The Federal Reserve Bank is going to stop buying US Treasuries starting this week so it will be interesting to see what type of reaction the market gives us. Are there a plethora of foreign investors that are going to keep treasury yields low or is there going to be an even strong rally in yield because of the lack of foreign investors?
No one knows the answer to either of these questions but we will soon find out. November 2nd will be the first day in quite some time that the Federal Reserve is going to take their hand out of the pot when it comes to US Treasuries. The most logical analysis would be that the yields of treasury notes would have to increase to become more attractive to investors.
There is a possibility that yields are already attractive to foreign investors but if this had been the case in the first place the Federal Reserve Bank would not have needed to buy US Treasuries. We will find out quickly if these foreign investors are interesting in investing in our economy through treasury notes. Keep an eye on treasury yields and it will explain a lot this week.
Bank of America continues to offer very low mortgage rates when looking at mortgage interest rates from a historical perspective. With mortgage rates being below 5% for a significant period of time many home owners have been able to save by refinancing. Do not let this opportunity pass you by; get out there and refinance to a lower mortgage rate today.
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Author: Jesse Wojdylo
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