The Real Deal Miami

Bank of America home loan exec debates future of mortgage rates

October 13, 2009 04:40PM

While rates on 30-year fixed-rate mortgages have stayed steadily below 5 percent, and the volume of loan applications subsequently spiked by 16.4 percent during the week ending Oct. 2, analysts are now scrambling to determine how long rates will remain low. Barbara Desoer, Bank of America’s president of home loans, spoke with CNBC’s Diana Olick to discuss the future of mortgage rates. “I think [it] depends on what else is going on in the economic recovery and the status of the economy at that time and how much capital as a result of the recovery is willing to go back into the housing market,” Desoer said. “There is no doubt that rates are artificially low.”