The economic numbers last week were absolutely horrible and the interest rate market reacted.  After the employment report showed a gain of just 69,000 jobs and growth in GDP was revised to an annualized rate of 1.9% from the 2.2% pace estimated a month ago, bank lending rates and U.S Treasury rates moved demonstrably lower.

The 30 year mortgage rates had already been moving lower for consecutive weeks and after the latest round of crappy economic statistics, the average 30 year mortgage rate gave up another ten basis points.  The ten basis point drop, 10/100ths of a percent, in the 30 year pushed the average mortgage rate down to a new record low of 3.765 percent.  30 year FHA mortgage rates were down by 6.3 basis points to a rate of 3.625 percent and 30 year jumbo mortgage rate dipped 12 basis points to 4.175 percent

US Treasury rates either led or followed the rate decline depending on which economist you ask.  The Ten year Treasury rate was walloped, dropping 28 basis points to 1.47 percent.  The five year Treasury note gave up 14 basis points to 0.62 percent and the one year Treasury rate dropped three basis points to 0.17 percent.

CD interest rates got off far better this week as banks did not react as aggressively to falling interest rates on the savings side of the ledger.  The average interest rate found on the top bank CD rates and top bank savings account rates were held in check.  CD interest rates held their own in part due to the aggressive of online only banks that appear to be supporting credit card portfolios with their aggressive CD rate and saving arte promotions.  One can’t argue with the formula.  The average rate on the top two year bank CDs is 1.178 percent and the average rate on the best savings account rates is 0.948 percent.  With the average credit card rate hovering at 13.66 percent, the spread to the banks funding credit card offers with CDs and savings account should result in windfall of cash to the bottom line.

The average rate found on the best CD rates across all maturities held to an average rate of 1.047 percent.  The highest three month CD rates and six months CD rates lost some yield on the week, the average rate on the one year CDs was unchanged and the highest two year and five year CD rates advanced over the course of the week.

As an example of the potential for success of funding high rate lending with low costs online deposits look at Discover Financial Services latest results.  The bank and credit card company reported net income of $631 million for the first quarter of 2012, as compared to $465 million for the first quarter of 2011.  A rise in profits of 166 million dollars over three months, wowza.  Now look at the margins, net interest margin was 9.03%.  Double wowza.

Barclays Bank started offering some of the most competitive rates on online CDs and savings accounts just this year.  Barclays Bank CD rate for a five year CD is near the top of the pack with a rate of 1.80 percent and the online savings account is equally competitive at 1.00 percent with no minimum balance requirement.  Bank rate offers like these have helped prop up the average rates for the best bank CDs and savings accounts.

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 June 1, 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 (unchanged)
3 month CD rates 0.479 percent (down .006 percent)
6 month CD rates 0.751 percent (down .01 percent)
1 year CD rates 1.057 percent (unchanged) 1.057
2 year bank CD rates 1.178 percent (up .005 percent)
5 year CD rates 1.769 percent (up .01 percent)

Money market and savings account rates:
Bank money market rates and savings account rates 0.948 percent (unchanged)

Mortgage rates:
30 year mortgage rate 3.765 percent (down .095 percent) 
15 year mortgage rate 3.073 percent (down .058 percent) 
20 year mortgage rate 3.595 percent (down .074 percent) 
30 year jumbo mortgage rate 4.175 percent (up .125 percent)
30 year FHA mortgage rate 3.625 percent (down .063 percent) 

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

Treasury rates:
Six month Treasury rate 0.12 percent (down .02 percent)
One year Treasury rate 0.17 percent (down .03 percent)
Two year Treasury rate 0.25 percent (down .05 percent)
Five year Treasury rate 0.62 percent (down .14 percent)
Ten year Treasury rate 1.47 percent (down .26 percent) 

All bank savings rates and lending rates are based on surveys conducted by at the close of June 1, 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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