Bank CD rates, mortgage rates and credit card rates moved lower for the week ending May 5th, 2012.  All bank savings rates and lending rates moved down with the exception of bank savings accounts which displayed a minor uptick on the week.  Week economic data released during the week along with the growing debt problems of Europe continued to move the interest rate markets. 

Week economic news, international economic difficulties and activity in the stock market continue to be major influences on the direction of interest rates this year.  This past week’s major economic news was the jobs report on Friday which recorded the number of new jobs created for the month of April.  Investors and economists were expecting an increase of about 160,000 new jobs and unfortunately the number came in at just 115,000.  The poor showing in jobs creation pushed the stock market lower and the bond market higher.  Bond prices and interest rates move in opposite directions, as bonds prices rose interest rates came down. 

The advance in the bond markets pushed mortgages rates to their best levels for the year, though the rate drop for this week was extremely mild.  The average 30 year mortgage rate in the bank rate survey fell by .008 percent to an average interest rate of 3.949 percent.  Jumbo mortgage rates slid down by 1.3 basis points or .013 percent to 4.325 percent.
FHA home loans displayed the largest rate change falling by 7.5 basis points to an average interest rate of 3.775 percent.

CD interest rates moved in a similar fashion to the mortgage market with rates just fractionally lower on the week.  The CD rate index which measures the top rates offered on the three month CDs, six month CDs, one year CDs, two year CDs and five year CDs were down by just .002 percent to an average interest rate of 1.051 percent.

Among the best CD rates available nationally, the five year maturities were unchanged with an average rate of 1.779 percent, the two year CDs gained .003 percent to an average yield of 1.165 percent and the reaming three maturities showed rate reductions.  The best three month CD rates barely moved lower, slipping .001 percent to yield 0.493 percent.  The highest six month CD rates gave up.009 percent bringing the average rate to 0.761 percent.  And the one year CD rates slid down .004 percent to an average interest rate of 1.056 percent.

Bank money market rates and savings rates fought the tide of lower rates and showed a gain in yield for the week.  The average rate offered on the top bank savings accounts and money market accounts were up by .003 percent to 0.933 percent.  Bank savings accounts have been crushed for the better part of this year even while CD rates have shown just moderate rate dips.  The recent rise in savings rates is a mere blip when compared to the drop in rates for the year and the magnitude of the drop relative to other bank savings products.

Credit card rates finally showed some activity.  After four weeks of stagnation, the average interest rate on the best credit card rate tier for new credit card offers moved down by one basis point.  The average rate among the best credit card rates on the market got off the side line and came down to 13.66 percent.  Credit card companies have been extremely active this year with new marketing campaigns that focus on increased credit card rewards and added card holder benefits.  While there are a number of new credit cards to choose from with some desirable features and rewards programs, the interest rates on these cards have changed very little through the first four months of 2012.

Treasury rates were mostly lower on the week.  The six month Treasury rate was unchanged at 0.14 percent.  The one year Treasury rate was down one basis point to yield 0.18 percent.  The two year Treasury note managed to gain a basis point nudging the rate up to 0.18 percent.  The five and ten year Treasuries showed the most action dipping by four and five basis points, respectively.  The five year Treasury ended the week at 0.78 percent while the ten year came down to 1.91 percent.

The weekly bank rate survey provides a detailed report on bank savings rates and lending rates by consumer rate category.  The most current survey is for the week ending May 4, 2012.  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

CD interest rates:
Composite CD interest rate index 1.051 percent (down .002 percent)
3 month CD rates 0.493 percent (down .001 percent)
6 month CD rates 0.761 percent (down .009 percent)
1 year CD rates 1.056 percent (down .004 percent)
2 year bank CD rates 1.165 percent (up .003 percent)
5 year CD rates 1.779 percent (unchanged)

Money market and savings account rates:
Bank money market rates and savings account rates 0.933 percent (up .003 percent)

Mortgage rates:
30 year mortgage rate 3.949 percent (down .008 percent) 
15 year mortgage rate 3.169 percent (down .031 percent) 
20 year mortgage rate 3.723 percent (down .015 percent) 
30 year jumbo mortgage rate 4.325 percent (down .013 percent)
30 year FHA mortgage rate 3.775 percent (down .075 percent) 

Credit card rates:
Credit card rates for new credit card offers 13.66 percent (down .01 percent)

Treasury rates:
Six month Treasury rate 0.14 percent (unchanged)
One year Treasury rate 0.18 percent (down .01 percent) 
Two year Treasury rate 0.27 percent (up .01 percent)
Five year Treasury rate 0.78 percent (down .04 percent)
Ten year Treasury rate 1.91 percent (down .05 percent) 

All bank savings rates and lending rates are based on surveys conducted by at the close of May 4, 2012 with all of the interest rates obtained directly from the banks within the survey.  Treasury rates are obtained directly from the Department of the Treasury.  

For more information detailed interest rate data on mortgage rates, CD rates, credit card rates and savings account rates please see: 3 month CD rates, 6 month CD rates, 1 year CD rates, 2 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, best interest checking accounts and best credit card rates.

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