The last piece of significant economic news moving inters rates was the lackluster jobs report released on September 5th, 2014.  Since the release, long term interest rates of done nothing but move higher apparently without provocation.  Now, relative to where the market is historically, the interest rate changes are not earth shattering but, we are starting to see bank CD rates and mortgage rates move out of the comfy trading range they have settled in since the second quarter of 2014.

This past week, mortgage rates leaped higher by almost 14 basis points.  This is the largest increase since early summer.  One basis point is equal to 1/100th of a percent.  The average 30 year mortgage rate at the nation’s largest bank mortgage lenders ended the week at 4.320 percent.  30 year jumbo mortgages saw a slightly greater rate increase, moving up to 4.225 percent on the week or a rise of almost 17 basis points.  FHA rates followed with an increase of just over ten basis points to 4.038 percent.

CD rates did move nearly as much mortgage rates or Treasury rates this week.  CD rates have been leading the market higher however, as summer has started to come to a close.  This past week was somewhat muted relative to the previous week’s advances with the average rate on the best bank CD rates available nationally climbing by just 2/1000ths of a percent to an average rate of 1.144 percent.

The average CD rate is calculated using the CD rate index which measures the top ten best CD rates on the three month term bank CDs, six month term CDs, one year CDs, two year and five year bank CDs that are available nationally.

Of the five maturities used to calculate the CD rate index, only the six month and two year CD rates moved higher.  The average rate on the top ten six month CDs popped up to 0.742 percent while the average rate on the two year certificates moved up to 1.272 percent.

Treasury rates made a statement regarding the changing outlook for interest rates as long term rates rose significantly more versus short term rates.  The change ion long term rates over short term rates results in a steepening yield curve which is indication of higher rates into the future.

Over the course of the week, six month Treasury rates were unchanged at 0.05 percent, one year rates increased by one basis point to 0.11 percent, two year Treasury rates were up by six basis points to 0.58 percent, five year Treasuries jumped by 14 basis points to 1.83 percent, and the ten year Treasury ended the week up 16 basis points to close at 2.62 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 September 15, 2014.  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 for September 15, 2014

CD interest rates:
Composite CD interest rate index 1.144 percent (up .002 percent)
3 month CD rates 0.395 percent (unchanged)
6 month CD rates 0.742 percent (up .005 percent)
1 year CD rates 1.095 percent (unchanged)
2 year CD rates 1.272 percent (up .007 percent)
5 year CD rates 2.216 percent (unchanged)

Money market and savings account rates:
Bank money market rates and savings account rates 0.955 percent (unchanged)

Mortgage rates:
30 year mortgage rates 4.320 percent (up .137 percent)
15 year mortgage rates 3.519 percent (up .117 percent)
20 year mortgage rates 4.088 percent (up .188 percent)
30 year jumbo mortgage rates 4.225 percent (up .167 percent)
30 year FHA mortgage rates 4.038 percent (up .105 percent)

Credit card rates:
Credit card rates for new credit card offers 13.88 percent (unchanged)

US Treasury rates:
Six month Treasury rate 0.05 percent (unchanged)
One year Treasury rate 0.11 percent (up .01 percent)
Two year Treasury rate 0.58 percent (up .06 percent)
Five year Treasury rate 1.83 percent (up .14 percent)
Ten year Treasury rate 2.62 percent (up .16 percent)

All bank savings rates and lending rates are based on surveys conducted by at the close of September 15, 2014 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.

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