Weaker than expected economic data coming from foreign markets along with continued tensions in the Middle East and Ukraine continue to put downward pressure on most interest rates. The benchmark, ten year US Treasury bond settled right at 2.40% at week’s end, the very low point of the trading range this year. It was only a short time ago at the onset of 2014 that the ten year Treasuries were flirting with 3.00%. And while interest rates have moved lower and consumers seem to be getting accustomed to these numbers, the Fed has continued to cut back on monetary easing and the employment situation continues to improve albeit, very slowly.
Countering the impact of world markets and geopolitical events, economic activity and expansion in the US market has been sufficient enough to prop up some bank savings rates as lending activity for businesses and consumers has shown slow but consistent growth. Loan demand and increased banking activity has pushed bank CD rates a smidge higher and held savings and money market interest rates unchanged during this low rate cycle.
As the peak home buying season starts coming to a close, mortgage rates were once again downcast giving new home loan borrowers more time to refinance at historically low rates or obtain greater buying power with lower monthly mortgage payments. Average 30 year home mortgage rates, jumbo mortgage rates, and FHA mortgage rates were all lower over the course of the week.
CD rates were not exactly shooting towards the sky this week but, the interest rates offered on the best bank certificates of deposit offered nationally crawled marginally higher. CD rates ticked up on the long end of the curve with the best two year CD rates and five year CD rates providing higher yields as the week drew to a close. Bank CD rates for shorter term maturities were, unfortunately, mixed this past week.
The average consumer credit card rate did not change during the current bank interest rate survey. For the third week in a row, the average rate on new credit card offers was held in place at 13.88 percent.
Average rates for bank savings accounts and money market accounts remained stuck in neutral this week, based on the SelectCDrates.com latest survey of interest rates. The yield earned on bank savings and money market accounts was unchanged at 0.947 percent.
Bank Rates Market Recap with the Weekly Change in Interest Rates Offered for August 25, 2014.
CD interest rates:
Composite CD interest rate index 1.120 percent
3 month CD rates 0.396 percent
6 month CD rates 0.737 percent
1 year CD rates 1.057 percent
2 year CD rates 1.234 percent
5 year CD rates 2.176 percent
Money market and savings account rates:
Bank money market rates and savings account rates 0.947 percent
30 year mortgage rates 4.188 percent
15 year mortgage rates 3.386 percent
20 year mortgage rates 3.931 percent
30 year jumbo mortgage rates 4.078 percent
30 year FHA mortgage rates 3.970 percent
Credit card rates:
Credit card rates for new credit card offers 13.88 percent
US Treasury rates:
Six month Treasury rate 0.06 percent
One year Treasury rate 0.10 percent
Two year Treasury rate 0.53 percent
Five year Treasury rate 1.68 percent
Ten year Treasury rate 2.40 percent
All bank savings rates and lending rates are based on surveys conducted by SelectCDrates.com at the close of August 25, 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 August 25, 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.