Savings rates have continued to creep higher while borrowing rates slip slightly lower based on the most recent survey of bank rates conducted by  This theme has been in place for the past few weeks with modest increases seen in bank CD rates and savings rate as mortgage rates have dropped and car loan rates have held their own.

Mortgage rates have pulled back to very desirable levels this summer as have longer term Treasury bond rates.  The average 30 year mortgage rate in the current bank rate survey was 4.043%, pretty much the low point of the summer.  FHA rates have slumped below 4.00% and 30 year jumbo mortgage rates are not far behind with average cost of 3.920%.

The ten year Treasury rate has made followed, or led, the mortgage market action downward.  The ten year T-bond ended the week at 2.18%, its lowest point since May of this year. 

The recent pull back in bond yields has been precipitated by concerns over world economies, predominantly Asia, as opposed to concerns over the strength of the U.S. economy which seems fairly sound.  The strength in the U.S. economy is acting as the support for bank savings rates as banking profits are up and lending activity is more vigorous. 

Banks in some regions are finally seeing the need to aggressively price their savings products to attract new money.  Note – savings rates, CD rates and money market rates are mostly unchanged at the big national banks as these behemoths still have obscene sums of depositor’s dough to play with.

More important rate data that came at the end of the week, which may very well send a wrench into the current yield curve and bank rate market, was the action in short term Treasury rates.  Six month Treasury rates and one year Treasury rates ended the week at 0.23% and 0.38%, respectively.  We identified the drop in long rates as seen with lower mortgage rates and Treasury bonds, but short term Treasuries did not follow this path. 

The closing rates for the three and six month Treasuries were the highest closing yields for these securities for the year.  Long rates retracting, short rates increasing.  Digest that data!

Bank rates market recap for August 10, 2015:

CD interest rates:
Composite CD interest rate index 1.218 percent
3 month CD rates 0.446 percent
6 month CD rates 0.830 percent
1 year CD rates 1.223 percent
2 year CD rates 1.390 percent 
5 year CD rates 2.203 percent

Money market and savings account rates:
Bank money market rates and savings account rates 1.016 percent

Mortgage rates: 
30 year mortgage rates 4.043 percent
15 year mortgage rates 3.325 percent
20 year mortgage rates 3.819 percent
30 year jumbo mortgage rates 3.920 percent
30 year FHA mortgage rates 3.820 percent

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

US Treasury rates:
Six month Treasury rate 0.23 percent
One year Treasury rate 0.38 percent
Two year Treasury rate 0.73 percent
Five year Treasury rate 1.59 percent
Ten year Treasury rate 2.18 percent

All bank savings rates and lending rates are based on surveys conducted by at the close of August 7, 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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