Bank of America Refinance Mortgage Rates – April Home Loans Higher
Posted on | March 25, 2010 | No Comments
Bank of America refinance mortgage rates have been below 5% for almost all of 2010 but that is likely to change in April. April home loans are likely to be higher as the 10 year treasury rate yield is now uptrending in the Federal Reserve Bank is going to stop purchasing mortgage-backed securities.
Many analysts have predicted the conclusion of the Fed mortgage-backed securities purchase program was going to add at least one full percentage point to mortgage interest rates. Couple the conclusion of this program with an uptrending 10 year treasury rate yield and we are going to see higher mortgage rates.
Bank of America and most mortgage lenders have done a great job of advertising in the current low interest rate environment. It will be very interesting to see how these banks and lending institutions adjust their strategy as mortgage rates start to head higher. After gaining many new customers with low interest rates it will be an adjustment to see them profit with interest rates moving up.
At the present time we are still seeing 30 year fixed mortgage rates around 4.85% but this is likely to change very quickly. As the 10 year treasury rate yield makes its assault on 4% we can expect to see 30 year fixed mortgage rates move well above the 5% mark.
Author: Alan Lake
Comments
Leave a Reply