With yet another move to the downside this past week, lending rates are very close to their lowest levels of the past three years.  While the drop in rates has received very little attention ion the general media, reaching these levels is quite a feat.

The average 30 year mortgage rate at the nation’s leading mortgage lenders dipped fractionally lower pushing the average cost down well below 4.00%.  The benchmark 30 year home mortgage now has an average rate of 3.666%, based on the latest survey of bank rates conducted by SelectCDrates.com.

Not all bank rates are at the low levels found in the mortgage market.  Bank certificate of deposit rates ticked up this past week and have not seen a week during which the average yield has experienced any kind of major haircut or rate reduction. Savers and investors are surely not going to rejoice over the current state of affairs in savings rates but, the average rate on bank CD products has managed to forge ahead slightly as bond rates and lending rates have moved south.

The average rate on the SelectCDrates.com CD rate index was boosted by 4/1000ths of a percent to 1.256%.  The SelectCDrates.com CD rate index measures the top ten best CD rates for three month term CDs, six month CDs, one year CDs, two year, and five year certificates.

The heart of the CD yield curve saw the greatest rate changes for the week.  The best one year CD rates and two year CD rates popped the most rising to 1.277% and 1.482%, respectively.  Six month CD rates also moved higher on the week while three month rates fell and five year CD rates held steady.

In the absence of data on bond rates, it would come as no surprise that CD rates are rising.  The forces that pushed interest rates lower starting at the tail end of the fourth quarter in 2015 have mostly moved into reverse, putting upside pressure on interest rates.

At the start of 2016, weak economic data here and abroad brought down commodity prices, most notably oil prices, and conveyed a concern that another recession may be coming.  In contrast, the most recent data shows slow but steady growth that has resulting in increased commodity prices and very consistent job growth.

Angst regarding China growth is subsiding, though this may be a bit premature, and the fears of recession in other world economics has been slowing evaporating with the rise in commodity prices which many developing nations depend upon for income.

Of course, a lot of the positive economic numbers, or even the reversal in negative sentiment and psychology, are the result of very accommodative monetary policies by the Federal Reserve and more importantly, by central banks around the world. The opposing view holds that the resulting actions of these accommodative monetary policies may not work out quite as well as some participants would hope.

Bank rates market recap for April 18, 2016:

CD interest rates:
Composite CD interest rate index 1.256 percent
3 month CD rates 0.527 percent
6 month CD rates 0.935 percent
1 year CD rates 1.277 percent
2 year CD rates 1.482 percent
5 year CD rates 2.057 percent

Money market and savings account rates:
Bank money market rates and savings account rates 1.040 percent

Mortgage rates:
30 year mortgage rates 3.666 percent
15 year mortgage rates 2.997 percent
20 year mortgage rates 3.490 percent
30 year jumbo mortgage rates 3.513 percent
30 year FHA mortgage rates 3.613 percent

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

US Treasury rates:
Six month Treasury rate 0.37 percent
One year Treasury rate 0.53 percent
Two year Treasury rate 0.74 percent
Five year Treasury rate 1.22 percent
Ten year Treasury rate 1.76 percent

All bank savings rates and lending rates are based on surveys conducted by SelectCDrates.com at the close of April 15, 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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