Bank of America mortgage rates have been all over the map during the month of August. We have seen home interest rates as low as 5.05% and then we have seen them as high as 5.5%: where are interest rates going from here?
Bank of America mortgage rates have seen an unbelievable amount of volatility throughout the month of August. After a very slow month of July, average mortgage rates have expanded the range of 5.1% to 5.3% out to 5% to 5.5%. It seems that every single time we hit one of these levels, home loan rates bounce back and move all the way to the other end of this trend. Is this likely to continue?
The answer seems to be an astounding yes as every single time Bank of America mortgage rates get to 5.5% the government jumps in and makes another speech about how overall rates are going to remain at historically low levels. This pushes rates all the way back down to 5% until the markets realize that this is way too low. The 10 year treasury rate yield then begins to uptrend which causes overall rates to move higher once again. The process has gone on several times throughout the month of August.
This is likely to change though as the Federal Reserve Bank has announced that it is going to stop buying US Treasuries by the end of September. If this actually happens, it could be the case that the market will actually set rates. From the looks of it, if the market did set rates, we would be seeing the 30 year fixed mortgage rate move its way towards 6%. This would not be good for those who want to refinance or buy their first home but it seems to be reality.
