A strong jobs report following a cautious report from the head of the Federal Reserve has caused a fracture in bank rates.  Lending rates dipped for the week while savings rates forged ahead, ending the week on an up note.

Lending rates, including mortgage rates and auto loan rates, dropped lower predominantly based on a speech by Chair Janet Yellen on March 29.  During her speech, the Fed chair clarified the Fed’s current position on interest rates and the state of the economy, clarifying that the Fed anticipates only gradual increases in the federal funds rate in coming years. Calculating when and how often the Fed will raise the fed funds rate in 2016 has been a subject undergoing intense speculation ever since the first rate increase in almost a decade was announced in December of 2015.

Pushing savings rates higher, including money market accounts and certificates of deposit, was the jobs report that was released on April 1st.  The jobs report came across to some analysts as being less than robust but the headline numbers showed a strong performance with job gains of 215,000 for the month of March.  While there are certainly pockets of concern in the numbers, the data caps off a trend over the past three months that puts the average gain in new jobs at 209,000 per month.

The factors pulling rates lower caused mortgage rates to drop by almost a ¼ percent for the week with the average 30 year mortgage rate dropping to a stunning 3.675%.  30 year jumbo rates and FHA rates followed right along, falling by a similar sum as did mid and short term rates including ten year mortgage rates and 15 year mortgage rates.

Money market account rates, savings account rates and CD rates moved in the opposite direction of mortgages and ended the week higher.  The average rate on the top bank savings and money market accounts climbed to 1.042%.  The best CD rates jumped to 1.252%. Better yields on bank CDs were seen almost across the board.  The best six month CD rates, one year CD rates, and two year CD rates were all elevated on the week.

Bank rates market recap for April 4, 2016:

CD interest rates:
Composite CD interest rate index 1.252 percent
3 month CD rates 0.530 percent
6 month CD rates 0.933 percent
1 year CD rates 1.269 percent
2 year CD rates 1.473 percent
5 year CD rates 2.057 percent

Money market and savings account rates:
Bank money market rates and savings account rates 1.042 percent

Mortgage rates:
30 year mortgage rates 3.675 percent
15 year mortgage rates 3.042 percent
20 year mortgage rates 3.538 percent
30 year jumbo mortgage rates 3.508 percent
30 year FHA mortgage rates 3.638 percent

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

US Treasury rates:
Six month Treasury rate 0.40 percent
One year Treasury rate 0.62 percent
Two year Treasury rate 0.76 percent
Five year Treasury rate 1.24 percent
Ten year Treasury rate 1.79 percent

All bank savings rates and lending rates are based on surveys conducted by SelectCDrates.com at the close of April 1, 2016 with all of the interest rates obtained directly from the banks within the SelectCDrates.com survey.  Treasury rates are obtained directly from the Department of the Treasury.

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