Loans Expert

Bank of America refinance mortgage rates have been below 5% for the entire year of 2010. At the present time 30 year home loans are at 4.85%. It is very interesting that the 30 year fixed-rate mortgage has been in a very tight range between 4.8% and 5% for the entire year. Once it breaks out of this range you can expect some wild movements.

Many analysts have predicted that mortgage interest rates are going to rise starting in the spring of 2010. There’s a very good possibility that we are seeing the calm before the storm as mortgage rates have moved very little since the beginning of January. Once we start to see movement there could be wild fluctuations in the 30 year fixed mortgage rate.

Some analysts are calling for bank mortgage rates to move up to as high as 8%. While this is a very extreme prediction there is a possibility that mortgage rates will move up at least one full percentage point when the Federal Reserve Bank stops buying mortgage-backed securities. The conclusion of the mortgage-backed securities purchase program will be at the end of March of 2010.

Bank of America has positioned itself very well when it comes to this low interest rate environment. The amount of marketing they have done is quite impressive as the most television networks and Internet websites have some type of Bank of America advertisement. This means that they are getting eyes to their website and likely gaining new customers.

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Tags: home loans, Loans