Bank rates dropped backed down during the second week of March after rising with some vigor in the previous week following the release of the monthly jobs report.  The better than expected jobs growth numbers presented in the report by the government on Friday put a bit of shock into the interest rate market as many participants took the strong job figures as sign the Fed will consider raising interest rates in June of this year.

Despite strong jobs numbers, continuing economic reports have shown a less than robust economy.  The weak data came in the form of retail sales and housing construction.  These data points along with European monetary easing, European quantitative easing has definitely benefited bonds here in the US along with those in Europe, is providing a ceiling for interest rates and some pressure pushes rate back down.

These push and pull forces impacting interest rates from consumer credit card users to business borrowers are par for the course.  In fact, the Fed has stated in recent months that they still need to see further improvement in the market before moving rates higher meaning more up and down days and weeks are in front of us.

After reaching the highest level for the year at 2.24 percent on Friday, immediately the employment report release, the ten year Treasury bond drifted back down to 2.13 by the close of business on the thirteenth.  The five year Treasury made a similar move, dipping to 1.50 percent this past Friday after hitting 1.70 percent in the prior week.

Most borrowers will see the improving rate picture when shop for a new home loan.  Mortgage rates improved across a broad spectrum of home financing products throughout the week.

CD rates skipped the memo about lower bank rates and forged higher.  The CD rate index skipped up to 1.171 percent with higher interest rates seen on mostly long term maturities with some action on the one year as well.  The CD rate index is a composite measure of the top ten best CD rates across several maturities including three month term CDs, six month CDs, one year CDs, two year, and five year certificates. 

For the week, the average rate on the best one year bank CDs, two year CDs, and five year certificates all moved to the upside.

Money market rates and savings account rates also bucked the downside move with rates on the top yielding accounts moving up on the week.  The average rate on the top ten highest bank money market accounts and savings accounts made a minor increase to 0.980 percent.

Bank rates market recap for March 16, 2015:

CD interest rates:
Composite CD interest rate index 1.171 percent
3 month CD rates 0.431 percent
6 month CD rates 0.755 percent
1 year CD rates 1.171 percent
2 year CD rates 1.321 percent 
5 year CD rates 2.177 percent

Money market and savings account rates:
Bank money market rates and savings account rates 0.980 percent

Mortgage rates: 
30 year mortgage rates 3.986 percent
15 year mortgage rates 3.288 percent
20 year mortgage rates 3.769 percent
30 year jumbo mortgage rates 3.938 percent
30 year FHA mortgage rates 3.763 percent

Credit card rates:
Credit card rates for new credit card offers 13.89 percent

US Treasury rates:
Six month Treasury rate 0.11 percent
One year Treasury rate 0.24 percent
Two year Treasury rate 0.68 percent
Five year Treasury rate 1.60 percent
Ten year Treasury rate 2.13 percent

All bank savings rates and lending rates are based on surveys conducted by at the close of March 13, 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.

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