Mortgage rates, CD rates and credit card rates were flying in a holding pattern for the week ending February 22, 2013.  Treasury rates pulled backed slightly with the benchmark, ten year Treasury bond, falling below 2.00% and closed at its lowest level for the month.  The action in the Treasury market many be a tad misleading since the ten year Treasury reached its low point for the month on Thursday when it first reached 1.97% but the range in February so far has been very tight with a high yield for the ten year briefly touching 2.05%.

Bank rates continue to face upwards pressure as investor’s money has made a modest move out of fixed income securities such as Treasury bonds and mortgage bonds and into riskier assets such as stocks, ETFs and commodities.  Lower demand for bonds puts pressure on their prices and lower prices results in higher interest rates.  There are two factors in the market keeping the money flows from running wild. 

The most recent scare to impact the market, the spending cuts brought on by the government sequester agreement, is adding some risk to the market with concerns over the effect spending cuts will have on economic growth for the remainder of the year.  Market concerns such as these take the pressure off bonds and put it back on the stock market which helps to drive some funds into safe and secure bonds and helps hold prices higher and rates lower.  The added demand on mortgage bonds and Treasury bonds brought on by the Federal Reserve bond buying spree as a part of their monetary stimulus programs is also keeping a lid on any significant interest rate increases.  The 85 billion dollars in Fed stimulus or Treasury bond and mortgage bond purchases is most certainly helping to keep prices from dropping on these securities.

The mild drop in rates in the Treasury market was hardly felt in mortgages or with bank CDs.  The average 30 year mortgage rate was almost flat lined, increasing by less than one basis point or .01% for the week.  The average 30 year fixed rate mortgage available at the nation’s largest bank mortgage lenders was 3.688 percent compared to 3.679 percent in the previous week.  Conventional mortgage loans with shorter maturities followed the 30 year with very little change in the average rates however; the jumbo mortgage market and FHA rates displayed a little more momentum as they followed long term Treasuries lower.  The average 30 year FHA mortgage rate was cut back 1.3 basis points to 3.525 percent and jumbo mortgage rates retreated by 2.7 basis points to 3.885 percent.

CD interest rates maintained their part in the holding pattern for bank rates this week.  The average CD rate in the SelectCDrates.com CD rates index slipped by just 4/1000ths of a percent.  The average CD rate in the SelectCDrates.com CD rate index measures the average rate for the top ten highest CD rates on the three month bank CDs, six month CDs, one year CDs, two year CDs and five year CDs.  The average CD rate moved down to 1.035 percent from 1.039 percent in the week earlier.

Bank money market rates, savings account rates and credit card rates remained composed throughout the week.  The average rate on consumer credit cards was unaltered at 13.76 percent with only mild changes taking place among the vast array of consumer credit cards offered to the public.  The average rate on the top money market accounts and savings accounts was unaltered at 0.942 percent.

As mentioned earlier, ten year Treasury rates dipped down to 1.97 percent on Friday after closing at 2.01 percent on the previous Friday.  The five year Treasury bond was down by a similar amount, slipping to 0.84 percent from 0.87 percent in the prior week.  The two year Treasury was off by two basis points and closed at 0.27 percent.  The one year was lower by just one basis point and ended the week at 0.16 percent and the six month T-bill actually ticked higher by one basis point to 0.14 percent.

The SelectCDrates.com weekly bank rate survey provides a detailed report on bank savings rates and lending rates by consumer rate category.  The most current survey is for the week ending February 22, 2013.  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 for February 22, 2013

CD interest rates:
Composite CD interest rate index 1.035 percent (down .004 percent)
 3 month CD rates 0.465 percent (down .015 percent)
 6 month CD rates 0.748 percent (down .005 percent)
 1 year CD rates 1.037 percent (unchanged)
 2 year CD rates 1.187 percent (down .002 percent)
5 year CD rates 1.736 percent (unchanged)   

Money market and savings account rates:
Bank money market rates and savings account rates 0.942 percent (unchanged)

Mortgage rates:
 30 year mortgage rates 3.688 percent (up .009 percent)
 15 year mortgage rates 2.867 percent (up .007 percent)
 20 year mortgage rates 3.590 percent (down .021 percent) 
30 year jumbo mortgage rates 3.885 percent (down .027 percent) 
30 year FHA mortgage rates 3.525 percent (down .013 percent)

Credit card rates:
Credit card rates for new credit card offers 13.76 percent (unchanged)

Treasury rates:
Six month Treasury rate 0.14 percent (up .01 percent) 
One year Treasury rate 0.16 percent (down .01 percent)
Two year Treasury rate 0.27 percent (down .02 percent)
Five year Treasury rate 0.84 percent (down .03 percent)
Ten year Treasury rate 1.97 percent (down .04 percent)

All bank savings rates and lending rates are based on surveys conducted by SelectCDrates.com at the close of February 22, 2013 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.  

Additional bank rate data is available to help consumer shop and compare mortgage rates, CD rates and checking accounts for the week ending February 22, 2013 at the following rate tables: 9 month CD rates, 3 year CD rates, 4 year CD rates, 10 year mortgage rates, best interest checking accounts.

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