Even with the better than expected monthly jobs report released on Friday, interest rates managed to move lower on the week.  The monthly employment report is often a significant market moving economic release and with this month’s number coming in higher than expected, an increase in rates would have been the expected outcome.  Of course, the opposite reaction took place with most all bank rates reported in the weekly bank rate survey conducted by Selectcdrates.com dipped lower on the week.

U.S. equity markets posted a small loss for the week which may explain the flow of funds into fixed income markets including mortgage backed bonds and Treasury securities.  Weakness in the energy sector continued through the week which dampens down the fear of rising inflation which also holds interest rates lower.

However, the big story that is muting the reaction to any economic data is the uncertainty over the outcome of the November elections.  The election is almost upon us and who knows what impact that might have on interest rates.  Note – the big story for the financial markets is upcoming election, the big national story was clearly the tragic outcome brought on by hurricane Sandy.

Market data has moved from positive to negative to indifferent throughout this year.  Given that the economic outlook and market perspectives appear to have not made a material change since the beginning of the year, the impact the elections may bring on Tuesday has become increasingly important to the financial markets and has kept investors on the sidelines keeping more money in fixed income securities and keeping interest rates low until the uncertainty is lifted.

In the mortgage market, all mortgage products measured in the weekly bank rate survey moved down for the week with the exception of FHA mortgage rates which were unchanged at 3.470 percent.  The more popular home loan borrowing choice, the 30 year fixed rate mortgage, dropped this week by 1.5 basis points or 0.015 percent to an average rate of 3.507 percent.  The 30 year jumbo mortgage rates were less costly for nee borrowers by a greater margin, dipping 6.3 basis points to an average rate of 3.887 percent.

In the bank CD market, CD interest rates were down by the smallest of margins for the second consecutive week.  The Selectcdrates.com CD rate index was lower by just 1/1000th of a percent to an average interest rate of 1.045 percent.  The CD rate index measures the top ten best CD rates available nationally for the three month term CD, six month CD, one year CD, two year and five year term bank CDs.  The best three month CD rates dropped by just 4/1000ths a percent to an average CD interest rate of 0.478 percent.  Most all other maturities followed along this angle with the exception of the one year CD rates which were unchanged over the course of the week with an average yield of 1.063 percent.

The best credit card rates available held steady, returning to a holding pattern that has dominated the second half of this year.  The average credit card interest rate on new card offers remained at 13.71 percent.   This week showed the least amount of activity in new card offers for quite some time.  Almost all credit card offers showed no rate change and even the usual activity in new promotions with credit card rewards and short term rate promotions were held in limbo. 

The best bank money market rates and savings account rates were also unchanged this week.  The list of the top ten bank money market account rates and top ten best bank savings account rates showed no change in composition, all bank participants remained the same as did the interest rates offered on these products.  The average interest rate continued at 0.952 percent.

Treasury rates followed the path of the bank rates with most all Treasury rates headed lower with the exclusion of the very short term securities.  The six month and one year Treasury rates held firm at 0.15 percent and 0.19 percent, respectively.  The two year Treasury rate was lower by two basis points to 0.28 percent for the week, the five year gave up three basis points to yield 0.73 percent and the ten year Treasury was also down by three basis points placing the yield at 1.75 percent.

The Selectcdrates.com 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 November 2, 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 November 2, 2012

CD interest rates:
Composite CD interest rate index 1.045 percent (down .001 percent)
3 month CD rates 0.478 percent (down .004 percent)
6 month CD rates 0.770 percent (down .001 percent)
1 year CD rates 1.063 percent (unchanged)
2 year CD rates 1.187 percent (down .001 percent)
5 year CD rates 1.726 percent (down .002 percent)

Money market and savings account rates:
Bank money market rates and savings account rates 0.952 percent (unchanged) 

Mortgage rates:
30 year mortgage rates 3.507 percent (down .015 percent) 
15 year mortgage rates 2.803 percent (down .06 percent) 
20 year mortgage rates 3.398 percent (down .04 percent) 
30 year jumbo mortgage rates 3.887 percent (down .063 percent) 
30 year FHA mortgage rates 3.470 percent (unchanged)

Credit card rates:
Credit card rates for new credit card offers 13.71 percent (unchanged)

Treasury rates:
Six month Treasury rate 0.15 percent (unchanged) 
One year Treasury rate 0.19 percent (unchanged)
Two year Treasury rate 0.28 percent (down .02 percent)
Five year Treasury rate 0.73 percent (down .03 percent)
Ten year Treasury rate 1.75 percent (down .03 percent)

All bank savings rates and lending rates are based on surveys conducted by Selectcdrates.com at the close of November 2, 2012 with all of the interest rates obtained directly from the banks within the Selectcdrates.com survey.  Treasury rates are obtained directly from the Department of the Treasury.  

Additional bank rate data for mortgage rates, CD rates and checking accounts for the week ending November 2, 2012 can be found at the following rate tables:  9 month CD rates, 3 year CD rates, 4 year CD rates, 20 year mortgage rates and the best interest checking accounts.

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