Bank of America Refinance Mortgage Rates – March 31 Home Loans Moving Up
Posted on | March 31, 2010 | No Comments
Bank of America refinance mortgage rates have been extremely low for quite a long time but March 31st home loans are moving higher and we have seen many signals that could be pointing to much higher mortgage interest rates in the near future. The Fed concluding their mortgage backed securities purchase program as well as 10 year yields heading higher point to higher interest rates.
For the last several months many analysts have predicted that mortgage rates are likely to move up in the spring of 2010. While we have entered the spring we have yet to see a strong move higher. Last week we saw the 30 year fixed mortgage rate move from 4.75% to 5% in just a few days but that is the only upward movement we have seen.
With the 10 year yield now well above its 50 day moving average there is a very strong chance that this could pull mortgage rates higher. Since 1971 the 10 year yield and the 30 year fixed mortgage rate have had a very strong correlation. If the 10 year yield heads higher you can guess that mortgage interest rates will follow.
Bank of America and almost all mortgage lenders have benefitted greatly from the current low interest rate environment. It will be very interesting to see how they adjust their strategy if mortgage interest rates start to move higher in the very near future.
Author: Alan Lake
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