While bank savings rates were little changes for the week ending July 1, lending rates and bond rates increased dramatically.  The ten year Treasury bond increased by over 30 basis points by week’s end and the two year Treasury note increased by 15.  One basis point is equal to 1/100th of a percent.  Staying in line with the Treasury rates, 30 year mortgage rates shot up 25 basis points.

The rate increases in bank loans and bonds was mostly due to a reversal in funds flows.  Money moved into equities and came out of bond markets as investors … perceived that the economy is picking up steam.  The crisis in Greece over their potential default or more realistically, inevitable default, was put on the back burner as Greece pushed through new tax and savings measure.  Allaying those fears brought money into stocks and away from the safety and security of bonds.  As a result, bond prices moved lower and interest rates increased. 

Bank lending rates react to the market interest arte movements quickly and we saw an immediate increase in mortgage rates.  Bank savings rates, on the other hand, are rather sticky and bank are generally reluctant to increase fixed interest rate accounts until a well defined and sustained elevation on interest rates has been reached din the market.

The results of the most current bank rate survey performed by Selectcdrates.com dated July 1st, 2011 included the following mortgage rates, CD interest rates, credit card rates, money market rates, savings account rates and Treasury rates:

CD interest rates:
Composite CD interest rate index 1.352 percent (down .002 percent)
3 month CD rates 0.633 percent (unchanged)
6 month CD rates 0.999 percent (unchanged)
1 year CD rates 1.231 percent (unchanged)
2 year bank CD rates 1.472 percent (down .009 percent)
5 year CD rates 2.426 percent (down .002 percent)

Money market and savings account rates:
Bank money market rates and savings account rates 1.111 percent (down .007 percent)

Mortgage rates:
30 year mortgage rate 4.772 percent (up .25 percent)
15 year mortgage rate 3.879 percent (up .173 percent)
20 year mortgage rate 4.575 percent (up .212 percent) 
30 year jumbo mortgage rate 5.099 percent (up .299 percent) 
30 year FHA mortgage rate 4.588 percent (up .15 percent) 

Credit card rates:
Credit card rates for new credit card offers 13.73 percent (up .01 percent) 

Treasury rates:
Six month Treasury rate 0.07 percent (unchanged) 
Two year Treasury rate 0.50 percent (up .15 percent)  
Five year Treasury rate 1.80 percent (up .40 percent) 
Ten year Treasury rate 3.22 percent (up .34 percent) 

Unlike Treasury rates and mortgage rates, CD interest rates barely moved over the week.  The overall SelectCDrates.com CD interest rate index was down by just 2/1000’s of percent.  The CD rate index cover the ten best CD rates on three month CDs, six month CDs, one year CDs, two year CDs and five year CDs.  The index ended the week at 1.352 percent after a start at 1.354 percent.

The highest three month CD rates, six month CD rates and one year CD rates were all unchanged week over the week.  The average rate on the three month CDs held at 0.633 percent, the average rate on the six month CDs stayed at 0.999 percent and the rate for the ten highest one year CD rates remained at 1.231 percent. 

The average rate on the best two year bank CDs showed moderate activity and moved lower by just one basis point.  The average rate for the top ten best two year CDs closed out the week at 1.472 percent.  Five year CD rates were also lower for the week albeit by a very small margin.  The average rate on the top ten five year CDs moved from 2.428 percent to 2.426 percent.

Bank savings account rates and money market rates were down slightly on the week.  The average rate on the top ten highest savings accounts and money market accounts dipped by less than one basis point to 1.111 percent from 1.118 percent in the previous week.

Mortgage rates made a dramatic leap higher this week.  The average 30 year mortgage rate from the top bank mortgage lenders increased by 25 basis points to 4.772 percent.  The average rate on the 15 year mortgage increased by 17 basis points to close out the week at 3.879 percent.

20 year mortgage rates split the increase between the 15 year and 30 year by increasing 21 basis points by week’s end.  The average 20 year mortgage rate now stands at 4.575 percent.  Jumbo mortgage rates with a 30 year term were driven higher by 29 basis points.  The rate increase on jumbo home loans left the average rate at 5.099 percent.  FHA mortgage rates with a 30 year term stepped up 15 basis points to an average rate of 4.588 percent. 

Credit card rates ticked up one basis point.  The average credit card interest rate for new credit card offers increased to 13.73 percent.  The change is not likely based on changes in market rates but rather changes in individual credit card company pricing strategies on promoting new credit cards.  The overwhelming majority of credit cards in the credit card rate survey are adjustable rate credit cards.

Treasury rates made significant moves towards the end of the week with all but the shorter term Treasuries increasing in rate.  Six month T-bills were one such term that experienced no change in yield at 0.07 percent.  The one year Treasury rate moved up by four basis points to 0.20 percent.  The two year Treasury note gained 15 basis points to close this week at 0.50 percent.  The five year Treasury rate stepped up to 1.80 percent, a gain of 40 basis points.  The ten year Treasury gained 34 basis points on the week to a closing yield of 3.22 percent.

All bank savings rates and lending rates are based on surveys conducted by Selectcdrates.com at the close of July 1st, 2011 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 resources can be found at; 3 month CD rates, 6 month CD rates, 1 year CD rates, 2 year CD rates and 5 year CD rates, 30 year mortgage rates, 15 year mortgage rates, FHA mortgage rates, 20 year mortgage rates, 10 year mortgage rates, jumbo mortgage rates, CD rates California, Best Interest Checking Accounts, Best Rates on CDs and Best Credit Card Rates.


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