Bank of America Refinance Mortgage Rates – Home Loan Interest Rates Higher as 10 Year Treasury Rate Yield Increases
Posted on | November 16, 2010 | No Comments
Over the last week the 10 year treasury rate yield has moved up from 2.5% all the way to 2.9%. With this being the case we can expect to see 30 year fixed mortgage rates move higher as well. At the present time Bank of America refinance rates have moved from 4% to 4.3% when it comes to the 30 year fixed home loan.
It should come as no surprise to see home loan interest rates moving up as the 10 year treasury rate yield increases. Over the last several decades it has been proven that the 10 year yield and 30 year fixed mortgages have had a very strong correlation. Even with government interaction is still the case that the 10 year yield helps to move the 30 year fixed mortgage.
Even though 30 year rates have moved all the way up to 4.3% and is still the case that there are a growing number of homeowners who are looking to refinance and the current low interest rate environment. What is very interesting is the fact that many of these homeowners may jump onto rates at the present time as they feel that the 30 year fixed mortgage rate could move all the way back up to 5% sometime in 2011.
Over the last several months it has been the case that the number of mortgage applications submitted has been dominated by refinance applications. New home applications continue to lag as many first-time home buyers sit on the sidelines and wait for another government incentives such as a first-time home buyer tax credit.
With the overall economy still struggling to recover it will be very interesting to see how the federal reserve bank reacts to this increase in 10 year treasury rate yields. It seems that almost every time mortgage rates and treasury yields move higher the Fed takes action to keep interest rates near historic lows. We will have to wait and see if this happens again in November of 2010.
Author: Mike Garner
Tags: bank of america home loans > bank of america mortgage rates > bank of america refinance > home loan interest rates > mortgage interest rates > refinance mortgage rates
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