Bank rate news for the week was mixed with the big news centering on the European Central Bank’s (ECB) announcement to add liquidity to European markets and the U.S. monthly jobs report getting released on Friday showing good, but not great, growth in job creation.  More or less, conflicting data for interest rates.  Added liquidity generally pushes interest rates lower and job growth reflects an expanding economy which should lead to higher interest rates. 

The outcome in the interest rate markets was mostly higher rates with Treasury rates, mortgage rates, and bank lending rates moving higher while CD rates worked against the flow and moved lower for the week.  One week of data and interest rate analysis hardly makes a trend and this week would be especially hard to analyze since interest rates had moved measurable lower leading up to the ECB announcement while long term CD rates had been climbing ever so slightly.  Add to that, the jobs report was good but did not indicate a robust employment market on especially robust economic activity.

However, with economic activity showing some growth and inflation popping up slightly, it is hard to see how interest rates can stay this low for much longer.  But, this is clearly against the current consensus view.  While most economists had called for higher interest rates at the start of the year, the outlook has changed as the market has refused to play along with the prognosticators earlier forecasts with interest rates falling through most of 2014.  Now with rates down, economists expect a low rate environment to stay in place throughout the year.  Just wait, the consensus view is sure to change like the weather.

Bank interest rates showed mixed results in the most recent survey of bank rates conducted by SelectCDrates.com for the week ending June 6th, 2014.  Mortgage rates increased on the week but, contrary to many headlines, the increase was rather tame.  The average 30 year fixed rate mortgage available at the nation’s largest bank mortgage lenders was up by just 7.4 basis points or 0.074%.  30 year mortgage rates moved up to 4.221% from 4.147% in the prior week.

30 year FHA mortgage rates and jumbo mortgage rates were also up on the week.  FHA rates climbed by three basis points to 3.938% while 30 year jumbo mortgage rates increased by slightly more than seven basis points to 4.160%.

CD rates were down fractionally on the week.  The average CD rate measured by the SelectCDrates.com CD rate index was down by 4/1000ths of a percent, sliding to 1.106% from 1.110% in the previous week.  The SelectCDrates.com CD rate index measures the best CD rates on three month CDs, six month CDs, one year CDs, two year CDs and five year CDs that are available nationally. 

The different CD maturities making up the CD rate index did not all move in unison this past week.  Three month CD rates and five year CD rates displayed a rate reduction for the week, six month CD rates and two year CD rates were unchanged week over week, and the best one year CD rates showed a modest rate increase.

Credit card rates ticked higher, on average.  Consumer credit card rates have shown close to no volatility or rate movement in almost a year.  This week’s changes do not deviate from that trend since the rate increase was by just one basis point.  The one bp uptick pushed the average interact rate on new consumer credit card offers up to 13.87% from 13.86% from the week earlier.

Bank money mark account rates and savings account rates showed no change on the week.  The leading bank rates in this savings category were entirely unaltered form the previous weekly survey.  The average money market rate and savings rate remained at 0.887%.

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 June 6, 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 June 6, 2014

CD interest rates:
Composite CD interest rate index 1.106 percent (up .004 percent) 
3 month CD rates 0.392 percent (down .004 percent)  
6 month CD rates 0.737 percent (unchanged) 
1 year CD rates 1.060 percent (up .004 percent)  
2 year CD rates 1.192 percent (unchanged)  
5 year CD rates 2.151 percent (down .017 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, 4.221 percent (up .074 percent)  
15 year mortgage rates 3.359 percent (up .041 percent)  
20 year mortgage rates 3.970 percent (up .054 percent)
30 year jumbo mortgage rates 4.160 percent (up .073 percent) 
30 year FHA mortgage rates 3.938 percent (up .03 percent)

Credit card rates:
Credit card rates for new credit card offers 13.87 percent (up .01 percent)

US Treasury rates:
Six month Treasury rate 0.06 percent (unchanged)
One year Treasury rate 0.11 percent (up .01 percent)
Two year Treasury rate 0.41 percent (up .04 percent)
Five year Treasury rate 1.66 percent (up .12 percent) 
Ten year Treasury rate 2.60 percent (up .12 percent)

All bank savings rates and lending rates are based on surveys conducted by SelectCDrates.com at the close of June 6, 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.

Additional bank rate data is available to help consumer shop and compare mortgage rates, CD rates and checking accounts for the week ending June 6, 2014 at the following rate tables: 9 month CD rates, 3 year CD rates, 4 year CD rates, 20 year mortgage rates, VA mortgage rates, and the best interest checking accounts.

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