Mortgage rates came off of their brief upside movement from the previous week and continued the trend of moving lower once again.  While mortgage rates dropped on the week, CD interest rates held their ground with some spotty modest increases in the top ten CD rates for the midterm maturities.  The best credit card rates available were held firm, a position they have been in for several weeks now.  Rounding out the bank rates in this week’s survey, bank savings account rates and money market rates jumped slightly as the big Internet bank slug it out to offer the best rates in the market.

Plenty of bad news in the marketplace has kept a lid on bank rates.  The economy’s slow growth or at least questionable prospects for solid growth dominate the domestic headlines.  The economy’s prospects are not likely to improve measurably until the election is over for one and more importantly, the problems with the current policies and the fiscal cliff are straightened out.  The fiscal cliff is a reference to the expiration of numerous tax cuts presently on the books and the implementation of a series of mandatory spending cuts that are currently set in law.

In addition, Europe continues to erode and news of economic slowdowns in emerging economies is surfacing.  Emerging market central banks have recently reduces interest rates over concerns of a deeper global growth slump.  In a nutshell, the slow growth and troubling developments in North America, Europe, and China may very well pull down US production and international trade.  All of these factors leads to low rates and continued government intervention to keep interest rates low.  Inflation pressures may be the only factor that could push bank rates higher and for now the results on inflation pressures has been benign.

By the time the week came to a close, mortgage rates were mainly lower across all home loan products with the exception of FHA mortgage rates.  The 30 year fixed rate mortgage dipped ever so slightly to 3.529 percent.  The average rate for 30 year jumbo mortgages, or loan amounts greater than $417,000, slipped lower by almost 3 basis points to 3.935 percent.  One basis point is equal to one-hundredth of 1 percentage point.  The 30 year FHA mortgage rates bucked the trend and nudged higher by just over one basis point to 3.400 percent.  With the minimal rate changes, mortgage rates remain near all time lows

Interest rates on certificates of deposit showed very little activity for the week.  The CD rate index which measures the best CD rates across several maturities (three month CD, six month CDs, one year CDs, two year CDs and five year CDs) was down by 1/1000th of a percent to 1.049 percent.   Three month CD rates were unchanged over the course of the week as were the six month CD rates.  Two year CD rates were lifted by less than one basis point, the only term showing a rate increase, and the two and five year CD rates tumbled modestly lower.

The best credit card rates have nothing to report once again as rates have held at 13.70 percent since the start of the fourth quarter and the better part of the third quarter.  Credit card companies have played with the marketing of promotions slightly without altering long term credit card rate offers to acquire new good credit customers and the companies continue to make tidy profits as their cost of funds remain low and credit card delinquencies fall.

Bank savings accounts rates and money market rates displayed a minor rate increase.  The average interest rate found on the top savings accounts and money market account was up by 3/1000ths of a percent to 0.952 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 October 12, 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 for October 12, 2012

CD interest rates:
Composite CD interest rate index 1.049 percent (down .001 percent)
3 month CD rates 0.485 percent (unchanged)
6 month CD rates 0.772 percent (unchanged)
1 year CD rates 1.057 percent (down .001 percent)
2 year CD rates 1.189 percent (up .004 percent)
5 year CD rates 1.741 percent (down .007 percent)

Money market and savings account rates:
Bank money market rates and savings account rates 0.952 percent (up .003 percent) 

Mortgage rates:
30 year mortgage rates 3.529 percent (down .003 percent) 
15 year mortgage rates 2.813 percent (down .015 percent) 
20 year mortgage rates 3.386 percent (down .049 percent) 
30 year jumbo mortgage rates 3.935 percent (down .028 percent) 
30 year FHA mortgage rates 3.400 percent (up .012 percent)

Credit card rates:
Credit card rates for new credit card offers 13.70 percent (unchanged)

Treasury rates:
Six month Treasury rate 0.15 percent (unchanged) 
One year Treasury rate 0.18 percent (unchanged)
Two year Treasury rate 0.27 percent (unchanged)
Five year Treasury rate 0.67 percent (unchanged)
Ten year Treasury rate 1.69 percent (down .06 percent)

All bank savings rates and lending rates are based on surveys conducted by at the close of October 12, 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.

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