A monthly jobs report with 288,000 new jobs is good news for the economy.  Good news for the economy means higher demand for goods, upward pressure on prices, increased loan demand, and higher interest rates.  Well….most of the time anyway. 

The monthly payroll report released on May 2nd was quite a bit stronger than expected.  The market was expecting a fairly robust monthly report to make up for bad winter weather of just over 200,000 jobs and the market was certainly surprised to see almost 300,000 new jobs for the month of April with added positive revisions added to the previous two months.  Good news for the economy, should be bad news for interest rates (i.e. higher rates – which assumes you are on the borrowing side).

The strong employment numbers further solidifies the position held by the Fed to reduce monetary easing throughout the year.  A reduction in monetary easing, not to be confused with tightening, should be another signal that interest rates will move higher in the….near future.

The one overhang in the market is the tension in Ukraine.  Ukraine is sure to be a problem for the coming months.  Russia is not stepping away from a confrontation in their backyard if only to destabilize the region to amuse themselves while western Europe and the U.S. spend money on holding the nation together and fret about what to do next.  It is rather remarkable that there is only one notable overhang bothering the fixed income market rather than the usual issues such as Fed uncertainty, inflation scares, political stupidity, and international economies that step closer and then back away from financial armageddon.

Of course, interest rates did not move higher and were mostly lower on the week.  By the close of the week, mortgage rates and Treasury rates were trimmed slightly from where they were at the start of week.  Credit card rates and bank money market rates were unchanged from the previous week.  Bank CD rates were also mostly unchanged with the exception of long term certificates of deposit which increased moderately.

The top bank CD rates with three month, six month, and one year terms displayed no change from the prior week.  The highest two year and five year CD rates available bumped up a couple of basis points.  The average two year CD rate, measured by the top ten highest rates available nationally, increased by almost one basis point to 1.187% while the average five year CD rate climbed by almost three basis points to 2.163%.

Mortgage rates were lower by across the spectrum of popular fixed rate loan products although the rate reductions were relatively mild.  The average 30 year fixed rate mortgage was reduced by almost six basis points this past week which brought the average 30 year rate to 4.341%.  30 year FHA loan rates were down by a near identical sum, pushing the average rate down to 4.025%.  Jumbo rates were close to unchanged on the week, slipping by just under two basis points to 4.225%.

The SelectCDrates.com weekly bank rate survey provides a detailed report on bank savings rates and lending rates by different consumer rate categories.  The current bank rate survey is for the week ending May 2, 2014 with rates obtained on or after that day.  The weekly rate survey presented the following interest rates and their changes for mortgage rates, CD interest rates, credit card rates, money market rates, savings account rates and Treasury rates.

Bank Rates Market Recap with the Weekly Change in Rates Offered for May 2, 2014

CD interest rates:
Composite CD interest rate index 1.093 percent (up .003 percent)
3 month CD rates 0.384 percent (unchanged) 
6 month CD rates 0.732 percent (unchanged)
1 year CD rates 1.035 percent (unchanged) 
2 year CD rates 1.187 percent (up .009 percent) 
5 year CD rates 2.163 percent (up .029 percent) 

Money market and savings account rates:
Bank money market rates and savings account rates 0.887 percent (unchanged)

Mortgage rates: 
30 year mortgage rates 4.341 percent (down .055 percent) 
15 year mortgage rates 3.489 percent (down .048 percent) 
20 year mortgage rates 4.066 percent (down .043 percent)
30 year jumbo mortgage rates 4.225 percent (down .013 percent) 
30 year FHA mortgage rates 4.025 percent (down .063 percent)

Credit card rates:
Credit card rates for new credit card offers 13.86 percent (unchanged)

US Treasury rates:
Six month Treasury rate 0.05 percent (up .01 percent)
One year Treasury rate 0.11 percent (unchanged)
Two year Treasury rate 0.42 percent (down .01 percent)
Five year Treasury rate 1.67 percent (down .05 percent) 
Ten year Treasury rate 2.60 percent (down .08 percent)

All bank savings rates and lending rates are based on surveys conducted by SelectCDrates.com at the close of May 2, 2014 with all of the interest rates obtained directly from the banks within the SelectCDrates.com survey.  Treasury rates are obtained directly from the Department of the Treasury. 

For more detailed interest rate data on mortgage rates, CD rates, credit card rates and savings account rates for the week ending May 2, 2014 please see:  3 month CD rates, 6 month CD rates, 9 month CD rates, 1 year CD rates, 2 year CD rates, 4 year CD rates, 5 year CD rates, 30 year mortgage rates, 15 year mortgage rates, FHA mortgage rates, 20 year mortgage rates, 10 year mortgage rates, jumbo mortgage rates, VA mortgage rates, best interest checking accounts and best credit card rates.

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