Bank rates dropped after more concerns over world economic growth and a very disappointing monthly jobs report was released on Friday.  When the week ending April 5th came to a close, mortgage rates had moved measurably lower, CD interest rates and money market account rates were off slightly and credit card rates dropped by one basis point or 1/100th of a percent.

The theme of the week goes back to last year’s issues, uncertain economic growth in the U.S and Euro markets and geo-political risks worldwide.  These big ticket issues bring about a flight to quality which pushes bond prices higher and leaves interest rates lower.  As a result, mortgage rates and Treasury rates dropped quickly, bank lending rates followed and savings rates slowly trailed behind.

The recent controversy about how to handle the banking problems in Cyprus worked out to be more of a reminder to the market on how fragile the Euro union is and that economic growth has come to a standstill throughout Europe.  In Asia, the Chinese government has been talking about stimulating their economy that is supposed to be growing in the high single digits, which leads to the question why a government would stimulate their economy with that growth rate.  And yet the leaders of that nation have also stated they intend to take action to cool off an overheated real estate market.  Puzzling growth statistics to say the least. 

On Friday, along comes the much watched U.S. monthly jobs report which showed a very disappointing creation of just 88,000 new jobs for the month of March.  As the first quarter had chugged along, many economists were watching the words coming out of the Fed to see if the monetary easing programs were showing any signs of letting up.  This sentiment was based on the belief that the U.S. economy was picking up steam.  The latest jobs report put a damper on that thought process. 

More importantly, only two weeks ago Fed Chairman Ben Bernanke noted that although the U.S. economy has shown improvement in recent months, unemployment remains at a high level and reiterated that the Fed will continue its bond purchase program until it is convinced the stimulative benefits to the economy can be sustained.  This past jobs report is certainly not affirming a sustained economic recovery.

At week’s end, the average 30 year mortgage rate available at the nation’s largest bank mortgage lenders had a full 15 basis points chopped off.  The 30 year rate closed the week at 3.500 percent after making a start at 3.650 percent.  30 year FHA mortgage rates took an almost ten basis point hair cut, getting cut down to 3.370 percent from 3.465 percent in the week earlier.  Jumbo mortgage rates with a 30 year term experienced a similar decline, dipping to 3.705 percent from 3.803 percent in the previous week.

CD interest rates were down but with not nearly the vigor found in mortgage rates.  The average CD rate in the CD rate index was lower by just 2/1000ths of a percent.  The drop in rates pushed the CD rate index down to 1.008 percent from 1.010 percent in the prior week.  The CD rate index measures the best CD rates available nationally on three month CDs, six month CDs, one year CDs, two year CDs and five year CDs. 

Among the five different maturities that make up the CD rate index, only the one year CD rates and five year CD rates displayed any changes and these two maturities moved in opposite directions.  The one year CD rates ticked up modestly with the average rate found on the top ten highest one year CD rates gaining 4/1000ths of a percent to an average rate of 1.016 percent and the top ten five year CD rates giving up 6/1000ths of a percent to an average rate of 1.703 percent.

Bank money market rates and savings account rates drifted lower by 3/1000ths of a percent, the same reduction that was experienced in the previous week.  The slight loss in yield puts the average rate on the top ten highest money market and a savings account rates at 0.917 percent from 0.920 percent in the past week. 

Credit card rates were not exactly a hot bed of activity but the average interest rate on new card offers across all card categories was down on the week by one basis point.  Many of the most popular credit cards on the market showed no rate change on the week however, the credit card companies that did alter some of their select new card offers all made adjustments to the downside.  The average credit card rate this past week dipped down to 13.74 percent from13.75 in the preceding week. 

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 April 5, 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 April 5, 2013

CD interest rates:
Composite CD interest rate index 1.008 percent (down .002 percent) 
3 month CD rates 0.457 percent (unchanged) 
6 month CD rates 0.709 percent (unchanged) 
1 year CD rates 1.016 percent (up .004 percent) 
2 year CD rates 1.157 percent (unchanged) 
5 year CD rates 1.703 percent (down .006 percent) 

Money market and savings account rates:
Bank money market rates and savings account rates 0.917 percent (down .003 percent)

Mortgage rates:
 30 year mortgage rates 3.500 percent (down .15 percent) 
15 year mortgage rates 2.745 percent (down .08 percent) 
20 year mortgage rates 3.352 percent (down .17 percent) 
30 year jumbo mortgage rates 3.705 percent (down .098 percent) 
30 year FHA mortgage rates 3.370 percent (down .095 percent)

Credit card rates:
Credit card rates for new credit card offers 13.74 percent (down .01 percent)

Treasury rates:
Six month Treasury rate 0.10 percent (down .01 percent) 
One year Treasury rate 0.13 percent (down .01 percent)
Two year Treasury rate 0.24 percent (down .01 percent)
Five year Treasury rate 0.68 percent (down .09 percent)
Ten year Treasury rate 1.72 percent (down .15 percent)

All bank savings rates and lending rates are based on surveys conducted by at the close of April 5, 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.  

Additional bank rate data is available to help consumer shop and compare mortgage rates, CD rates and checking accounts for the week ending April 5, 2013 at the following rate tables:  9 month CD rates, 3 year CD rates, 4 year CD rates, 10 year mortgage rates, best interest checking accounts.

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