Stock Market Crash Good News for Mortgage Rates at Bank of America and Wells Fargo ; Bank of America (NYSE:BAC) dropped the 30 year fixed rate mortgage to just 4.25% today with an APR of 4.462%. Wells Fargo (NYSE:WFC) is now down to 4.375% with a 4.559% APR.
As the stock market took a dramatic fall yesterday, investors fled to bonds and dropped yields on mortgage backed securities which caused mortgage rates to fall to the lowest levels of 2011. Financial markets were focused on a resolution to the debt ceiling crisis and in the meantime the economy continued to slide. Consumer spending was down and employment forecasts look dismal.
So what is bad for the economy in general is often good news for mortgage rates. Alas, a weak economy makes it difficult for home buyers to take advantage of the fabulous rates.
15 year loans at the banks were 3.375% for the 15 year loan at Wells Fargo and 3.50% at Bank of America. BoA offers a 20 year fixed rate loan at 3.875% today with a 4.078% APR.
ARMs at Wells Fargo start at 2.75% for the 5 year conventional loan. Bank of America is quoting 2.875% for the same loan.
Refinance interest rates at Wells Fargo are 4.50% today for the 30 year refi and 3.625% for the 15 year contract. At BoA the 30 year refinance mortgage rate is 4.375% and the 15 year is 3.625%.
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