Interest rates moved lower over the past week with mortgage rates, CD rates and money market rates pulling back from the advances made at the start of September.  News for the week was fairly limited with weaker than expected retail sales numbers and a disappointing Consumer Sentiment report.  However, the weekly jobless claims report that was released on Thursday was once again much lower than expected which indicates a stronger employment situation and would lead to higher likelihood that the Fed will decrease bond buying soon.

Uncertainty over the position the Fed will take regarding monetary easing and the bond buying program has caused a great deal of volatility in the bond markets and has generally pushed interest rates higher.  Many market participants now believe that a pull back or tapering in the bond buying program is already priced into the market with elevated bank rates.  The lack of significant volatility this past week gives some credence to that notion that rates have priced in a reduction in bond buying by the Fed since the FOMC Announcement on any tapering or changes in Fed policy is due out in just a few days or Wednesday September 18.

Mortgage rates were cut back across the board at the nation’s top bank mortgage lenders.  Based on the current bank rate survey conducted by for the week ending September 13, 2013 30 year mortgage rates retreated by 9.3 basis points to an average rate of 4.672%.  One basis point is equal to 1/100th of a percent or 0.01%.

The shorter term 15 year mortgage rates were lower by 3.4 basis points which brought the average rate down to 3.789%.  30 year FHA mortgage rates slipped by 7.5 basis points dragging the average FHA loan rate down to 4.438%.  30 year jumbo mortgage rates were scaled back but almost the identical sum that was found in the 30 year conforming loans or 9.2 basis points, the rate haircut left the average jumbo mortgage rate jut slightly beneath the conforming rate at 4.648%.

Bank CD rates were down on the week albeit; it was by a very slim margin.  The CD rate index slipped by less than one basis point.  The CD rate index closed the week down 7/1000ths of a percent to 1.036%.  The CD rate index measures the top ten best CD rates on the three month term CDs, six month term CDs, one year CDs, two year and five year bank CDs available nationally. 

The top short term and midterm CD rates showed no activity with the best three month CD rates on through to the best two year CD rates were entirely unchanged.  The long term, five year CD rates moved down by 3.5 basis points to an average yield of 1.923%

Bank savings account rates and money market account rates were off marginally with a rate reduction of the less than one basis point.  The average rate found on the top ten highest money market rates and savings rates came in at 0.863%.

Credit card rates were unchanged for the third consecutive week.  Minor rate increases by some credit card issuers were offset by decreases on the top rates offered at a few others.  The net change on the best credit card rates offered across all credit card categories was less than one basis point which left the average consumer credit card interest rate at 13.80%.

Treasury rates were lower for most all maturities with the ultra short T-bills falling by the greatest sum.  The six month Treasury bill rate dipped three basis points on the week to just 0.02%.  The one year Treasury rate was down by one basis point to 0.13%.  The two year note was also off by one basis point closing the week at 0.45%.  The five and ten year Treasury bonds experienced basis points increases in the double digits.  The five year Treasury gave up six basis points to 1.71% and the ten year Treasury bond fell four basis points to 2.90%.

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 13, 2013.  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 13, 2013

CD interest rates:
Composite CD interest rate index 1.036 percent (down .007 percent)  
3 month CD rates 0.407 percent (unchanged)  
6 month CD rates 0.722 percent (unchanged)  
1 year CD rates 0.996 percent (unchanged)  
2 year CD rates 1.134 percent (unchanged)  
5 year CD rates 1.923 percent (down .035 percent)

Money market and savings account rates:
Bank money market rates and savings account rates 0.863 percent (unchanged) 

Mortgage rates:
30 year mortgage rates 4.672 percent (down .093 percent)  
15 year mortgage rates 3.789 percent (down .034 percent)  
20 year mortgage rates 4.613 percent (down .117 percent) 
30 year jumbo mortgage rates 4.648 percent (down .092 percent) 
30 year FHA mortgage rates 4.438 percent (down .075 percent)

Credit card rates:
Credit card rates for new credit card offers 13.80 percent (unchanged)

US Treasury rates:
Six month Treasury rate 0.02 percent (down .03 percent) 
One year Treasury rate 0.13 percent (down .01 percent)
Two year Treasury rate 0.45 percent (down .01 percent)
Five year Treasury rate 1.71 percent (down .06 percent)
Ten year Treasury rate 2.90 percent (down .04 percent)

All bank savings rates and lending rates are based on surveys conducted by at the close of September 13, 2013 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 detailed interest rate data on mortgage rates, CD rates, credit card rates and savings account rates for the week ending September 13, 2013 please see: 9 month CD rates, 3 year CD rates, 4 year CD rates, 10 year mortgage rates, VA mortgage rates, or best interest checking accounts.

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