Bank of America’s (NYSE: BAC) and Citigroup’s (NYSE: C) mortgages rates remain near historical lows as the economy takes a slow march toward recovery
Interest rates for 30-year refinance rates peaked as high as 5.35% during the last week, but have settled back down to around 5.05% as Monday morning rolled around.
Although interest rates are slightly higher than they were before the beginning of the New Year, many analysts believe that rates will continue to trend upwards as the Federal Reserve’s artificial support of the mortgage market is discontinued in March.
As a result of fears of increasing rates down the road, homeowners are increasingly refinancing their mortgages to “no surprises” fixed rate mortgages and locking in interest rates near historical lows. January is also frequently considered to be a month where consumers take a renewed look at their financial situation because of new-year’s resolutions and tax-filings. Since consumers are taking a closer look at their financial situations, many are looking to save money by refinancing their mortgages.
Bank of American and Citigroup are two of the largest players in the mortgage market and have been originating significant numbers of refinance loans. Bank of America is currently the largest mortgage originator because of its recent purchase of Countrywide. Citigroup is not far behind because of their renewed commitment to personal banking.
