Global financial market uncertainty has been the key force holding interest rates low as 2015 came to close and uncertainty continues to dominate the interest rate market as 2016 chugs along.  Even an optimistic view by the Federal Reserve and the subsequent fed funds rate hike in December of 2015 has failed to push most interest rates out of their narrow trading range.

The week ending March 24, 2016 was no exception to the global gloom theme holding rates down.  Treasury rates, mortgage rates, CD rates, and bank savings rates were little changed as the Easter holiday came to a close.  With big changes in oil prices and stock prices in March, it is a little surprising the interest rate markets have not experienced greatly volatility.

Unfortunately, while stocks and oil prices have moved quite a bit higher in March, the underlying currents causing the turmoil in global markets have not changed direction.

The considerable slowdown in the Chinese economy has not yet reversed direction with some investors still concerned over a hard landing yet to come.  The financial stresses on countries and companies that have been affected by the drop in commodity prices has not ended.  The BRIC nations (Brazil, Russia, India and China) are all in some form of economic turmoil with the notable exception of India.  The economic malaise in Europe has also not come to an end.

The continuing turmoil and uncertainty is driving central bankers to increase their accommodative positions.  Central banks around the globe are engaged in unprecedented monetary easing with some looking at negative interest rates as a means to stimulate economic growth.

Stagnant global economic growth and excessive monetary easing is keeping global rates low and U.S. domestic interest rates are not insulated from the global markets.  This is not to say that our economy is off to the races but, if there were not so many overseas economies festering, our interest rates would surely be somewhat higher than where they are now.

For now, car loan borrowers and mortgage borrowers can enjoy the ultra-low lending rates that are abundant at a number of U.S banks and financial institutions.  Savers and fixed investors will still have to wait patiently for interest rates to normalize and higher rates to hit the market.

Bank rates market recap for March 28, 2016:

CD interest rates:
Composite CD interest rate index 1.248 percent
3 month CD rates 0.531 percent
6 month CD rates 0.932 percent
1 year CD rates 1.258 percent
2 year CD rates 1.451 percent
5 year CD rates 2.057 percent

Money market and savings account rates:
Bank money market rates and savings account rates 1.029 percent

Mortgage rates:
30 year mortgage rates 3.820 percent
15 year mortgage rates 3.132 percent
20 year mortgage rates 3.588 percent
30 year jumbo mortgage rates 3.580 percent
30 year FHA mortgage rates 3.728 percent

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

US Treasury rates:
Six month Treasury rate 0.46 percent
One year Treasury rate 0.63 percent
Two year Treasury rate 0.89 percent
Five year Treasury rate 1.39 percent
Ten year Treasury rate 1.91 percent

All bank savings rates and lending rates are based on surveys conducted by SelectCDrates.com at the close of March 25, 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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