In an likely effort to shake some life into the long-suffering housing and mortgage markets, Bank of America has introduced new refinancing offers. The lender is providing special pricing plans for borrowers hoping to refinance their more risky mortgages with 30-year and 15-year fixed rate loans.
The limited-time offer runs through November 30 (by which point we may have seen a rate cut or two). While specific numbers weren't reported, BAC officials did note that the new plan will be available in all of the bank's retail outlets.
Like much of the financial-services sector, BAC shares have been slumping lower in recent weeks. From a long-term perspective, however, the stock has been appreciating since mid-2000 and recently enjoyed a successful test of support at its 40-month moving average. This long-term trendline has contained pullbacks in the shares dating back 6 years.
The equity is now perched a hair below the 50 level, which marks the site of heavy call open interest in the September and November options series. Just above the 50 strike is the equity's 20-day moving average, perched overhead around 50.50. If the equity is able to clear both of these bulwarks of resistance, it could be back on its way to challenge year-to-date highs.