Interest rates have been stuck in a narrow range even with the Fed rate hike debate pushing and pulling on the market.  Each time rates have made a push towards the upside, Fed comments or economic anxiety emanating from outside the U.S. has applied downward pressure and brought rates right back down again.

Economic anxiety has been good news thus far for borrowers.  Mortgage rates and auto loan rates continue to hover at very attractive levels.  Savers have, unfortunately, taken it on the chin for the most part.  CD rates have climbed slightly higher in the third quarter but, generally not enough to make fixed income investors break out into a sing and dance. 

There is a little good news for CD investors this past week.  Competition among the highest yielding bank CDs has heated up, driving mid term maturities modestly higher.  The average rate on the top ten highest bank CD rates jumped up one basis point or 0.01% to an average yield of 1.242%.  Two year CD rates were also boosted by one basis point pushing the average interest rate up to 1.410%.  Increases in midterm accounts are often a sign that lending activity by these institutions are on the rise which contrasts with the picture that is being painted by the dismal activity in the stock market.

The positive prospects seen in the U.S markets has certainly been countered by recent global economic and financial developments that have put some fear in the markets restraining any upward pressure on interest rates.  Many economists believe the information and data coming from overseas will have only a small impact on U.S. economic growth however, part of the Fed Chair’s speech regarding the Federal Reserves’ position on holding rates steady for now cited a bearish global outlook and weak inflation as reasons to put a rate increase on hold. 

Conflicting economic data appears to be bountiful going into the fourth quarter.  The U.S. housing markets has continued to form a strong base with 2015 turning into a solid year for existing and new home sales.  Car sales are well above expectations.  And, even job growth has turned in a very good performance for the year with the notable exception of missing wage increases.  Potential negative impacts from lower oil prices, a stronger dollar, and weakening growth internationally remains a big counter balance to any good news. 

Bank rates market recap for September 28, 2015:

CD interest rates:
Composite CD interest rate index 1.225 percent
3 month CD rates 0.436 percent
6 month CD rates 0.845 percent
1 year CD rates 1.242 percent
2 year CD rates 1.410 percent 
5 year CD rates 2.191 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 0.07 percent
One year Treasury rate 0.35 percent
Two year Treasury rate 0.70 percent
Five year Treasury rate 1.43 percent
Ten year Treasury rate 2.17 percent

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