As the economy shows continued signs of rebounding, stock prices have headed higher and bond prices move lower. Since interest rates move in the inverse direction of bond prices, bond rates moved higher for the week. An increased number of upbeat economic reports have boosted stock prices in December and driven money away from bonds.

The ten U.S. Treasury bond interest rate closed at 3.41 percent this week, an increase of eight basis points or 8/100’s of a percent from the prior week’s close of 3.33 percent. The two year Treasury increased by six basis points, rising to 0.67 percent from 0.61 percent in the previous week.

The relationship between bank rates and Treasury rates is, of course, quite strong. Albeit, there can be a significant delay between Treasury rate changes and bank rate changes. The key take away is that the recent uptick in interest rates in December has not abated.

While the trend appears to be for higher interest rates, this week bank rates managed to display a good instance of how it often takes a little time for changes in Treasury rates to be fully reflected in bank savings rates and lending rates.

Bank CD interest rates actually dropped modestly for the week with the composite rate index falling just under one basis point, dipping down to 1.450 percent from 1.456 percent in the preceding week.

Bank money market rates and savings account rates also moved modestly lower, with the average of the top ten best bank savings account rates and money market account rates falling one basis point to an average rate of 1.23 percent.

Mortgage rates were mixed on the week. The average 30 year mortgage rate from the top ten bank mortgage lenders was lower by seven basis points. The average 30 year mortgage rate closed the week at 4.904 percent from 4.972 percent in the earlier week. 15 year mortgage rates moved in the opposite direction with higher rates week over week. The average 15 year mortgage rate moved from 4.25 percent to 4.29 percent. The average points charged by the top ten bank mortgage lenders was little change at 0.50 points for the 30 year term home loan and 0.463 points on the 15 year.

Credit card rates ticked up slightly with an increase in the average credit card rate of one basis point. The average credit card rate for new credit card offers increased to 13.72 percent. The average credit card rate is based on a weekly survey of new credit card offers for the best credit card rate tier on the most popular credit cards available from the largest bank credit card companies.

The best three month CD rates were unchanged this week with the average of the top ten best three month CD rates remaining at 0.74 percent. The average of the best six month CD rates fell by two basis points to 1.06 percent. The best one year CD rates were also unchanged leaving the average one year CD interest rate the same as the previous week at 1.34 percent. Two year CD rates shed one basis point lowering the average two year CD interest rate to 1.62 percent. Five year CDs rates also gave back one basis point bringing the average rate for the top ten best five year bank CDs to 2.50 percent.

The summary of bank rates surveyed by in the weekly Bank Savings Rate and Lending Rate survey included the following interest rate results for the week ending December 24th:

Composite CD interest rate index 1.450 percent (down .006 percent)
3 month CD rates 0.74 percent (unchanged)
6 month CD rates 1.06 percent (down .02 percent)
1 year CD rates 1.34 percent (unchanged)
2 year bank CD rates 1.61 percent (down .01 percent)
5 year CD rates 2.50 percent (down .01 percent)
Bank money market rates and savings account rates 1.23 percent (down .01 percent)
30 year mortgage rate 4.904 percent (down .07 percent)
15 year mortgage rate 4.29 percent (up .04 percent)
Credit card rates 13.72 percent (up .01 percent)
Six month Treasury rate 0.19 percent (down .01 percent)
Five year Treasury rate 2.09 percent (down .14 percent)
Ten year Treasury rate 3.41 percent (up .08 percent)

All bank rates are based on surveys conducted by at the close of December 24th, 2010. Treasury rates are obtained directly from the Department of the Treasury.

Key links for information on the above bank rates include; 6 month CD rates, 1 year CD rates, 2 year CD rates and 5 year CD rates, 30 year mortgage rates table 15 year mortgage rates, table CD rates California, CD rates New Jersey, CD rates New York, CD rates Florida, CD rates Washington, CD rates Illinois, CD rates Virginia, credit cards as well as Chase Bank Promotions, Citibank Promotion, Interst Checking Accounts and Best Rates on CDs.

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