Low volume and volatility in the bond market the past two days has kept mortgage rates steady at Bank of America (NYSE: BAC) and other big lenders.
30-year mortgage interest rates today are 4.75% with .750 points and a sub-5.00% APR at 4.923%. The current 15-year loan is 4.125% and 1.125 points. These rates are on par with those at Citibank and an 1/8th point better than rivals JP Morgan Chaseand Wells Fargo.
Refinance mortgage rates are hovering at similar levels with the 30-year fixed rate at 4.75% with 1.250 points and the 15-year contract at 4.25% today.
The MBA reported this week that refinance applications dropped a whopping 25% from the previous week. Refinancing which was very favorable when mortgage rates were 4 to 4.25% is no longer financially beneficial to many borrowers who are holding mortgages at 5 to 6% interest rates. While refinancing applications represented 75 to 80% of all mortgage applications in 2010, that number is expected to drop significantly in 2011.
Bank of America continues to wait out a threatened WikiLeaks leak that many believe will be directed at the leadership of the bank. WikiLeaks founder Assange, last year said the organization was in possession of a hard drive from the computer of a Bank of America executive. This week Assange said there would be an eminent release of information that would force the resignation of leaders of a leading bank. No specific information about the content of the information has been revealed, nor has Assange said whichbank would be implicated.
No comments:
Post a Comment