As the year winds down, bank rates are moving higher with more vigor than we have seen at anytime during the year.  The ten year Treasury rate crossed the 3.00% threshold this past week closing out the week with a yield of 3.02% which is the first time the ten year closed above 3.00% all year long.  Of course, the rise in interest rates is still relatively mild and is far from creating a disruptive influence on the market.

Stronger consumer spending, the Fed’s announcement to finally start tapering their bond purchase program, and the gradual but consistently improving labor market has had a significant impact on U.S. stock prices and interest rates with rates and stock prices moving higher on the Feds decision and strong economic news.

Treasury rates were not the only rates showing a sizeable increase over the course of the week.  Long term CD rates were bumped up rather significantly as were the rates and costs on mortgage products. 

CD rates measured by the CD rate index did not show a whopping rate spike due to the steady rates being offered by banks on shorter term certificates.  The CD rate index measures the top ten highest CD rates across five different maturities including the best three month CD rates, six month CD rates, one year CD rates, two year and five year rates. 

The best three month CD rates and six month rates bumped just slightly higher during the last full week of the year ending with average yields of 0.403% and 0.767%, respectively.  One year CD rates climbed up to 1.028%.  The two year term certificates were not quite as strong as the one year with their upside action and closed the week with an average rate of 1.158%.  Five year maturities were measurably higher on the week with the top ten highest five year CD rates not yielding 1.988%.

Mortgage rates spiked across all mortgage products with the shorter term home loan products displaying the greatest rate increases.  The 15 year term mortgage loan moved up to 3.799% at week’s end.  Long term, 30 year mortgage loans, advanced by a greater absolute sum but a smaller relative percentage based on the term.  The average 30 year mortgage rates reached 4.704% at the close of the week.  FHA rates and jumbo mortgage rates showed only minor upticks with the 30 year FHA mortgage rate moving up to 4.350% and the 30 year jumbo mortgage rate rising to 4.505%.

Money market rates and savings account rates were held firm as December comes to a close.  The top bank rates for these savings products have shown very little volatility throughout the month of December.  The average rate on the top ten highest money market and savings account rates ended the week at 0.871%.

Credit card rates exhibited a very mild, one basis point, lift for the average new credit card offer.  The average rate on consumer credit cards increased to 13.84%.  Credit card rates have exhibited very little changes throughout the year with rates barely moving lower early in the year when the interest rates market headed down and then moving only modestly higher as market rates have been slowly driven north bound.

The weekly bank rate survey provides a detailed report on bank savings rates and lending rates by different consumer rate categories.  The most current survey is for the week ending December 27, 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 December 27, 2013

CD interest rates:
Composite CD interest rate index 1.069 percent 
3 month CD rates 0.403 percent 
6 month CD rates 0.767 percent  
1 year CD rates 1.028 percent 
2 year CD rates 1.158 percent 
5 year CD rates 1.988 percent

Money market and savings account rates:
Bank money market rates and savings account rates 0.871 percent

Mortgage rates:  
30 year mortgage rates 4.704 percent 
15 year mortgage rates 3.799 percent 
20 year mortgage rates 4.513 percent
30 year jumbo mortgage rates 4.505 percent
30 year FHA mortgage rates 4.350 percent

Credit card rates:
Credit card rates for new credit card offers 13.84 percent

US Treasury rates:
Six month Treasury rate 0.091 percent
One year Treasury rate 0.12 percent
Two year Treasury rate 0.40 percent
Five year Treasury rate 1.74 percent
Ten year Treasury rate 3.02 percent

All bank savings rates and lending rates are based on surveys conducted by at the close of December 27, 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 December 27, 2013 please see: 9 month CD rates, 3 year CD rates, 4 year CD rates, 20 year mortgage rates, VA mortgage rates, and the best interest checking accounts .

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