Bank rates were mostly lower for the week ending May 18, 2012.  Based on the most recent weekly survey of the top bank rates available nationally conducted by, mortgage rates and CD rates moved lower, savings account rates ticked up slightly higher and credit card rates were unchanged.

CD rates were down by a relatively modest sum of .5 basis points.  One basis point is equal to 1/100th of percent.  The average rate found on the best three month CDs through five year CDs drifted down to 1.047 percent from 1.052 percent from the previous week.  A change of less than one basis point is historical a very small change but when rates have reached the levels they are currently residing at, a change of .5 basis points become much more relevant.  This week’s rate decline is an exact reversal of the rate increase experienced in the previous week.

Within the five CD rate maturities surveyed, the three month CD rates dipped slightly, the six month CD rates were unchanged, one year CDs and two year CD rates ended the week on a positive note and the long term five year CDs were punished with an interest rate cut 2.5 basis points.

The rate drops for mortgage loans just keep coming.  The average 30 year mortgage rate available at the top ten bank mortgage lenders in this week’s survey moved lower by just under 4 basis points.  The 30 year mortgage dipped down to 3.860 percent from 3.898 percent in the prior week.  15 year mortgage loans were cheaper by almost 5 basis points, falling to 3.131 percent from 3.180 percent in the previous week.

30 year FHA mortgage rates experienced the largest drop for the week.  The average FHA home loan rate was cut back 7.5 basis points on the week which brought the average rate down to 3.688 percent from 3.763 percent.  Jumbo loans with a 30 year term were down by the same amount as the conventional 30 year mortgage or almost 4 basis points.  The average 30 year jumbo mortgage rate moved down to 4.300 percent from a rate of 4.338 percent available in the previous mortgage rate survey.

Credit card rates on new card offers were left unchanged from the previous week.  This is second week where there has been no change in credit card rates.  Among the bank rates measured in the weekly survey, credit card rates are historically the most sticky or inelastic.  Credit card rates generally move with changed in the prime rate or measurable movements in the fed funds rate.  This past week, the average new credit card rate remained at 13.66 percent.

Bank money market rates and savings account rates fought the down draft this week and moved higher on the week.  The average interest rate found on the top ten best money market accounts and savings accounts was elevated by 3/1000ths of a percent.  The rate increase bumped the average yield up to 0.948 percent from 0.945 percent in the prior week.  This year, there have been a few more entries into the high yield savings account promotional market driving the average rate higher.

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 May 18, 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

CD interest rates:
Composite CD interest rate index 1.047 percent (down .005 percent)
3 month CD rates 0.485 percent (down .012 percent)
6 month CD rates 0.761 percent (unchanged)
1 year CD rates 1.057 percent (up .001 percent)
2 year bank CD rates 1.173 percent (up .009 percent)
5 year CD rates 1.759 percent (down .025 percent)

Money market and savings account rates:
Bank money market rates and savings account rates 0.948 percent (up .003 percent)

Mortgage rates:
30 year mortgage rate 3.860 percent (down .038 percent) 
15 year mortgage rate 3.131 percent (up .049 percent) 
20 year mortgage rate 3.669 percent (down .031 percent) 
30 year jumbo mortgage rate 4.300 percent (up .038 percent)
30 year FHA mortgage rate 3.688 percent (down .075 percent) 

Credit card rates:
Credit card rates for new credit card offers 13.66 percent (unchanged)

Treasury rates:
Six month Treasury rate 0.15 percent (unchanged)
One year Treasury rate 0.20 percent (up .02 percent)
Two year Treasury rate 0.32 percent (up .05 percent)
Five year Treasury rate 0.75 percent (unchanged)
Ten year Treasury rate 1.71 percent (down .13 percent) 

All bank savings rates and lending rates are based on surveys conducted by at the close of May 18, 2012 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 information detailed interest rate data on mortgage rates, CD rates, credit card rates and savings account rates please see: 3 month CD rates, 6 month CD rates, 1 year CD rates, 2 year CD rates, 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, best interest checking accounts and best credit card rates.

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