The overload of volatility in the stock market has done very little to disrupt the bond market and interest rates.  Increased volatility, and boy has there been increased volatility, in the stock market often leads to some kind of reaction in the bond market with the usual outcome being a flight to quality leading to lower interest rates. 

While it is true, the initial shakiness in the stock market pushed bond prices higher and interest rates lower, as the days of August and September moved along, interest rates regained their footing and forged ahead ignoring the wild swings found in stocks.  Bond markets were mostly weaker throughout the holiday shortened week, both in the U.S. and overseas.  The losses in the bond market moved interest rates moderately higher though, rates remained within a narrow range awaiting the big news on coming with this week’s Fed meeting.

Evidence of the extended sideways range in interest rates could be seen in the long term, ten year Treasury bond.  10 year yields started the month of September at 2.17% and closed out Friday (September 11) at 2.18%.  The one year Treasury kicked off September at 0.39% and also closed just one basis point higher on the 11th at 0.40%.

Mortgage rates have been mostly holding steady near 4.00% waiting for Thursday’s announcement from the Fed on whether or not the target on the fed funds rate will be lifted by .25% or another delay will be announced while the Fed continues to gather economic data.

CD rates managed to move marginally higher.  The CD rate index climbed to 1.223% from 1.221% in the previous week.  The top bank savings account rates and money market account rates also squeezed out a small gain.  The top ten highest yielding savings account had an average rate of 1.015% compared to 1.020% in the prior week.

The CD rate index surveys and evaluates the top ten best CD rates on three month term bank CD accounts, six month term bank CD accounts, one year CD accounts, two year, and five year maturing CD accounts.

Credit card rates bucked the trend with the average rate across all credit card categories dropping to 13.88% from 13.89%.  The rate drop in new credit card offers was the first in several weeks but was driven by changes in just a few credit cards from among the dozens that are evaluated in the weekly survey.  The vast majority of the popular credit cards promoted were, once again, unaltered from the previous survey.

The big news comes this week when the Fed decides to move on with a hike in the fed funds rate or to hold steady yet again.  Our bet is the Fed sees data that is strong enough in the U.S. to support a rate hike.  The U.S economy does appear to be slowing but an artificially low fed funds rate, which is the current position, is not going to help the economy while a small rise simply brings rates back to a more conventional state of affairs.

Bank rates market recap for September 14, 2015:

CD interest rates:
Composite CD interest rate index 1.223 percent
3 month CD rates 0.446 percent 0.436
6 month CD rates 0.830 percent 0.840
1 year CD rates 1.228 percent
2 year CD rates 1.400 percent 
5 year CD rates 2.212 percent

Money market and savings account rates:
Bank money market rates and savings account rates 1.015 percent

Mortgage rates: 
30 year mortgage rates 3.946 percent
15 year mortgage rates 3.250 percent
20 year mortgage rates 3.756 percent
30 year jumbo mortgage rates 3.790 percent
30 year FHA mortgage rates 3.783 percent

Credit card rates:
Credit card rates for new credit card offers 13.88 percent

US Treasury rates:
Six month Treasury rate 0.25 percent
One year Treasury rate 0.40 percent
Two year Treasury rate 0.71 percent
Five year Treasury rate 1.52 percent
Ten year Treasury rate 2.20 percent

All bank savings rates and lending rates are based on surveys conducted by at the close of September 11, 2015 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 detailed interest rate data on mortgage rates, CD rates, credit card rates and savings account rates for the week ending September 11, 2015 please see: 3 month CD rates, 6 month CD rates, 9 month CD rates, 1 year CD rates, 2 year CD rates, 4 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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