There were mild increases across the board for mortgage rates, CD rates and Treasury rates for the week ending October 5, 2012.  The stronger than expected jobs report on Friday was the biggest catalyst of the week that nudged bank rates higher.  New loan borrowers and savers need not whimper or cheer, even with the upward movement in interest rates, mortgage rates remain near all time lows and CD rates are doing a lot of running in place.

The week over week change in bank rates displayed a small incremental change.  The 30 year mortgage rate in the weekly bank rate survey was higher by eight basis points or 8/100ths of a percent.  The interest rate increase pushed the average 30 year mortgage rate up to just over 3 ½ percent to 3.532 percent.  The 30 year jumbo mortgage rates and 30 year FHA mortgage rates were more reserved and closed out the week with even smaller increases in their average costs.  The average jumbo mortgage rate was up by just under four basis points to 3.963 percent.  FHA mortgage rates were boosted up by a near identical sum and ended the week at 3.388 percent

The increase in the employment report should generally lead to greater production and spending which should drive inflation and interest rates higher, eventually.  The Feds action to keep short term rates low via the Fed Funds rate and the latest decision to buy mortgage backed bonds each month until growth shows consistent improvement puts a fairly large cap on bank rates and the overall level of interest rates.  In addition, the troubles the Europe scares worldwide investors into the safety of US based fixed income investments. 

One big caveat, while the consensus view appears to be that the employment report was fairly robust, it was far from a growth number.  The current figures and revisions should be just enough to keep the economy where it is and will not provide enough added employment to grow the economy significantly.

The action in CD rates was even more muted than that found in mortgage rates.  The CD rate index advanced by less than one basis point on the week.  The CD rate index measures the average rate found on the highest three month CD rates, six month CD rates, one year CD rates, two year CD rates and five year CD rates available nationally.  The index was up by .001 percent on the week to close out at 1.050 percent.  Six month CD month CD rates, one year CD rates and five year CD rates moved modestly higher on the week while the three month CD rates and two year CD rates moved mildly lower.

The best savings accounts rates and money market rates were entirely unchanged on the week.  The average interest rate found on the top ten highest bank savings account rates and money market account rates remained at 0.949 percent.

The best credit card rates refused to move once again.  The average credit card interest rate on new credit card offers held at 13.70 percent for the fifth week, the longest streak this year without a change in the average rate offered to consumers.  Note, no change in the best credit card rates offered does not mean that the marketing departments of the large credit card companies are sitting on their hands.  There continues to be moderate activity in various credit card terms advertised including changes in the shorter term introductory credit card rates, credit card cash back terms and especially changes in air miles or credit card travel rewards recently.

The 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 October 5, 2012.  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 October 5, 2012

CD interest rates:
Composite CD interest rate index 1.050 percent (up .001 percent)
3 month CD rates 0.485 percent (down .002 percent)
6 month CD rates 0.772 percent (up .001 percent)
1 year CD rates 1.058 percent (up .001 percent)
2 year bank CD rates 1.185 percent (down .001 percent)
5 year CD rates 1.748 percent (up .005 percent)

Money market and savings account rates:
Bank money market rates and savings account rates 0.949 percent (unchanged) 

Mortgage rates:
30 year mortgage rate 3.532 percent (up .081 percent) 
15 year mortgage rate 2.828 percent (up .032 percent) 
20 year mortgage rate 3.435 percent (up .043 percent) 
30 year jumbo mortgage rate 3.963 percent (up .039 percent) 
30 year FHA mortgage rate 3.388 percent (up .038 percent)

Credit card rates:
Credit card rates for new credit card offers 13.70 percent (unchanged)

Treasury rates:
Six month Treasury rate 0.15 percent (up .01 percent) 
One year Treasury rate 0.18 percent (up .01 percent)
Two year Treasury rate 0.27 percent (up .04 percent)
Five year Treasury rate 0.67 percent (up .05 percent)
Ten year Treasury rate 1.75 percent (up .10 percent)

All bank savings rates and lending rates are based on surveys conducted by at the close of October 5, 2012 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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