Interest rates were lower for most fixed income accounts during the second week of December.  Loan rates continued to improve and are currently at very attractive levels across many consumer loan products from mortgage loans to car loans.  Treasury rates were also lower through mid December with some very significant moves in the long term Treasury bonds.  Not all rates however were seen falling throughout the week.  The top money market and savings rates moved higher while credit card rates simply stayed put.

Mortgage rates were down slightly during the week putting the average rate just above the record lows of early 2013.  The average 30 year fixed rate mortgage continued to move down staying just under the four percent mark.  The average 30 year rate coming from the nation’s largest bank mortgage lenders was 3.915 percent based on the most recent bank rate survey conducted by  30 year jumbo loan rates were pulled down as well with the average rate on these larger loan amounts coming in at 3.863 percent.  FHA rates were little changed with an average cost of 3.700 percent.

The top CD rates were little changed with only a slight move to the downside.  The best CD rates had been diverging from the overall market in recent weeks and had slowly tiptoed higher while the trend in the fixed income market had been for rates to move to the downside.  The average rate on the top yielding CDs available nationally slipped to 1.169 percent.  The average CD rate is measured by the which surveys 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.

Money market and savings account rates bucked the downward trend and moved to the upside.  The top money market rates saw increased competitive pressures which pushed interest rates higher however; these types of bank accounts are all adjustable rate accounts, not fixed rates.  The average rate on the top ten highest bank money market and savings accounts was lifted to an average yield of 0.977 percent.

Credit card rates sat out the action and were once again unchanged on the week.  Credit cards continue to be a profitable business segment for financial institutions with sticky rates holding at elevated levels for consumers while the costs of funds for these institutions continuing to drop.  The average rate across all consumer credit card offers has remained at 13.89 percent.

Treasury rates also dipped down on the week with stronger moves in long term Treasuries or those with terms over two years and smaller changes in the short term securities.  Ten year rates closed out Friday with a rate of 2.10 percent, the lowest close for the year.  The five year moved down to 1.53 percent which is off of the low point of the year reached in October when the five year hit 1.37 percent.  The one year was fairly inactive, ending the week at 0.19 percent.  The current one year rate is actually ten basis points off the low of the year.  The one year Treasury has dipped down to 0.09 percent multiple times in 2014.

Bank rates market recap for December 15, 2014.

CD interest rates:
Composite CD interest rate index 1.169 percent
3 month CD rates 0.406 percent
6 month CD rates 0.749 percent
1 year CD rates 1.141 percent
2 year CD rates 1.336 percent
5 year CD rates 2.212 percent

Money market and savings account rates:
Bank money market rates and savings account rates 0.977 percent

Mortgage rates: 
30 year mortgage rates 3.915 percent
15 year mortgage rates 3.309 percent
20 year mortgage rates 3.677 percent
30 year jumbo mortgage rates 3.863 percent
30 year FHA mortgage rates 3.700 percent

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

US Treasury rates:
Six month Treasury rate 0.09 percent
One year Treasury rate 0.19 percent
Two year Treasury rate 0.56 percent
Five year Treasury rate 1.53 percent
Ten year Treasury rate 2.10 percent

All bank savings rates and lending rates are based on surveys conducted by at the close of December 15, 2014 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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