Bank savings and lending rates were mixed for the week ending July 25, 2014.  The top bank CD rates were next to unchanged over the course of the week, Treasury rates were slightly higher on the short end of the curve and lower on the long end of the curve, and mortgage rates closed out the week fractionally higher.

Economic news for the week was somewhat limited with the markets focused more on geopolitical events including the Israeli incursion into Gaza and the Ukraine/Malaysian airliner fiasco.  These events have held interest rates low even as many market forecasters are expecting the Fed to increase rates sooner rather later.  The changing view for long term, higher interest rates is based on stronger employment numbers, substantial earnings growth for big businesses, and inflation figures that are beginning to heat up.

However, the interest rate markets are influenced by several factors, some that do not originate domestically.  Inflation is certainly one of the biggest factors impacting interest rates but the rising inflation figures are only in their infancy and globalization along with excess production capacity worldwide does a lot to keep a lid on rising costs.  The European markets play a significant role on any sustained interest rate changes in the US market and their slow growth continues to tug our rates lower.  The week housing market, a very significant segment of the US economy, is not moving forward and may be contracting with less activity from new home buyers and consumers which has been partially offset and supplemented by expanding investor activity once again.

Mortgage rates moved higher over the course of the week with most of the increase taking place towards the tail end of the week.  Along with most interest rates and interest rate sensitive securities, mortgage rates have held in very narrow range throughout the year and this week’s rise would be barely noticeable by most new home loan borrowers.  The 30 year fixed rate mortgage available at the nation’s largest bank mortgage lenders moved up by 3.1 basis points to an average rate of 4.211%.  One basis point is the equivalent of 1/100th of a percent.

Bank CD rates moved slightly, ever so slightly higher, on the week.  The average rate on the top certificates of deposits available nationally increased by just 1/1000ths of a percent.  The average CD rate in the CD rate index inched up to 1.112% from 1.111% in the previous week.

Credit card rates were unchanged on the week.  Credit card companies have become very complacent with new marketing efforts regarding credit card costs and rates and have focused on added benefits such as credit card rewards and add on customer service and security measures.  The average interest rate on new consumer credit cards continued to hold at 13.87% for the week.

Money market rates and savings account rates moved higher on the week.  The average rate on the top ten highest money market accounts and saving accounts available nationally ticked up by 7/1000ths of a percent which pushed the average yield to 0.904% from 0.897% in the prior week.

The weekly bank rate survey provides a detailed report on bank savings rates and lending rates by different consumer rate categories.  The current bank rate survey is for the week ending July 25, 2014 with rates obtained on or after that day.  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 with the Weekly Change in Rates Offered for July 25, 2014

CD interest rates:
Composite CD interest rate index 1.112 percent (up .001 percent) 
3 month CD rates 0.402 percent (unchanged)  
6 month CD rates 0.747 percent (unchanged) 
1 year CD rates 1.048 percent (down .003 percent)  
2 year CD rates 1.207 percent (up .009 percent) 
5 year CD rates 2.156 percent (unchanged) 

Money market and savings account rates:
Bank money market rates and savings account rates 0.904 percent (up .007 percent)

Mortgage rates:  
30 year mortgage rates 4.211 percent (up .031 percent)  
15 year mortgage rates 3.385 percent (down .037 percent)  
20 year mortgage rates 4.088 percent (up .088 percent)
30 year jumbo mortgage rates 4.090 percent (down .025 percent) 
30 year FHA mortgage rates 3.988 percent (up .018 percent)

Credit card rates:
Credit card rates for new credit card offers 13.87 percent (unchanged)

US Treasury rates:
Six month Treasury rate 0.06 percent (up .01 percent)
One year Treasury rate 0.11 percent (up .01 percent)
Two year Treasury rate 0.53 percent (up .02 percent)
Five year Treasury rate 1.69 percent (unchanged) 
Ten year Treasury rate 2.48 percent (down .02 percent)

All bank savings rates and lending rates are based on surveys conducted by at the close of July 25, 2014 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 July 25, 2014 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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