Bank rates moved mostly higher this past week with mortgage rates, CD rates and credit cards turning marginally higher while saving account rates and money market rates drifted slightly lower.  The government shutdown took some of the volatility out of the market as the week progressed without any solution to the crisis. 

The interest rates markets have shown little reaction to the rumors regarding potential solutions to the government stalemate, or the lack thereof, with the very notable exception of the short term Treasuries which have jumped fairly substantial especially as compared to the mid and long term notes and bonds.

The three month Treasury bill rate rose this week to 0.08% after starting out with a rate of 0.03%, a sizeable difference for the low yielding, short term securities.  Six month bills jumped to 0.07% after closing at 0.04% during the previous week.  The one month rate was clearly spooked by the debt issues with the Feds and skyrocketed to 0.25%, 12 basis points or 0.12% higher than where it was at the end of the prior week.  During the same time, the one year Treasury was up by just three basis points to 0.14%, the five year note climbed only one basis point to 1.42%, and the ten year Treasury bond ended the week at 2.70% or four basis points higher on the week.

Mortgage rates were up across the board with the average 30 year fixed rate conventional loan becoming more costly by just under eight basis points.  The rise in the 30 year fixed are loan put the average rate coming from the top ten bank mortgage lenders in the nation at 4.415%.  30 year jumbo mortgage rates were up by just over two basis points, pushing the average jumbo loan rate to 4.267%.  FHA mortgage rates were elevated by the same amount as the jumbo loans, rising 2.2 basis points.  The rate increase moved the average FHA loan rate up to 4.100% to end the week.

The average rate on the top bank CDs available nationally edged up slightly for the week with a nice pop coming from the six month term certificates.  The average CD rate measured by the CD rate index was up by 5/1000ths of a percent which pushed the index up to 1.048% from 1.043% in the week earlier. 

The average rate on the top ten best six month CD rates advanced by two basis points, the largest weekly rate change in quite some time.  Six month CDs closed out the week at 0.757% after ending the week before at 0.737%.  Three month CD rates and one year CD rates were unchanged on the week.  The top two year CD rates were dropped by a very slight 2/1000ths of a percent to 1.135%.  The five year term certificates were up by 5/1000ths of a percent boosting the average yield up to 1.935%.

Money market account rates and savings account rates reversed last week’s rise in rates and gave up 3//1000ths of a percent off the average return.  The average rate found on the top ten best savings account rates and money market rates came in at 0.858%.

Credit card rates continued a very slow and gradual rise with the average rate on consumer credit cards increasing by one basis point this week to 13.82%.  Credit card rates have made only modest changes throughout the year but the recent run of increases and leveling off has quietly driven the average interest rate on new credit cards to the highest point for the year.

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 October 11, 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 October 11, 2013

CD interest rates:
Composite CD interest rate index 1.048 percent (up .005 percent)  
3 month CD rates 0.401 percent (unchanged)  
6 month CD rates 0.757 percent (up .02 percent)  
1 year CD rates 1.011 percent (unchanged)  
2 year CD rates 1.135 percent (down .002 percent) 
5 year CD rates 1.935 percent (up .005 percent)

Money market and savings account rates:
Bank money market rates and savings account rates 0.858 percent (down .003 percent) 

Mortgage rates:
30 year mortgage rates4.415 percent (up .079 percent)  
15 year mortgage rates 3.494 percent (up .022 percent)  
20 year mortgage rates 4.225 percent (up .053 percent) 
30 year jumbo mortgage rates 4.267 percent (up .022 percent) 
30 year FHA mortgage rates 4.100 percent (up .022 percent)

Credit card rates:
Credit card rates for new credit card offers 13.82 percent (up .01 percent)

US Treasury rates:
Six month Treasury rate 0.07 percent (up .03 percent) 
One year Treasury rate 0.14 percent (up .03 percent)
Two year Treasury rate 0.35 percent (up .02 percent)
Five year Treasury rate 1.42 percent (up .01 percent)
Ten year Treasury rate 2.70 percent (up .04 percent)

All bank savings rates and lending rates are based on surveys conducted by at the close of October 11, 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 October 11, 2013 at the following rate tables: 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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