Mortgage rates, bank CD rates, and savings rates are drifting lower in July.  Bank rates are moving in conjunction with the general level of interest rates that just keep surprising the financial forecasters by moving closer and closer to zero.

Interest rate reductions were fueled on their move to the downside by the Brexit vote in the United Kingdom that took place at the end of June.  Since the instability that ran through the markets after the surprise decision by the UK voters to leave the European Union, interest rates have continued to move lower.  In fact, even the surprisingly strong jobs report released by the Bureau of Labor Statistics on July 8th failed to provide an upside catalyst for interest rates.

One of the most widely watched barometers for interest rates is the ten year U.S. Treasury bond.  As of the close of Friday, the ten year Treasury bond had a yield of 1.37%.  The day of the Brexit vote, the ten year was yielding 1.74%, a drop of 37 basis points within a matter of weeks.  A startling number given the low level at which interest rates were holding at going onto the tail end of the second quarter.

Rate declines moved from the Treasury market across a wide range of bank savings rates and lending rates.  Mortgage rates made noteworthy dips going into the second week of July.  Based on the most recent survey of bank rates conducted by on July 8th, the average 30 year fixed mortgage rate has been chopped down to 3.515%.  30 year jumbo mortgage rates moved lower as well, falling to 3.475% and 30 year FHA rates split the two with an average cost of 3.503%.

Bank CD rates took a hit as market interest rates pulled back.  Long term certificate rates took the brunt of the damage.  The rate on the top ten best five year CDs available nationally dropped to 1.979%.  The best six month CD rates and one year CD rates walked away unscathed while the short term, three month CD rates, were trimmed to 0.537%.

Bank money market account rates and savings account rates were scaled back just fractionally.  The average rate on the top ten money market accounts and savings accounts at the week with a yield of 1.059%.

Bank rates market recap for July 11, 2016:

CD interest rates:
Composite CD interest rate index 1.230 percent
3 month CD rates 0.537 percent
6 month CD rates 0.931 percent
1 year CD rates 1.251 percent
2 year CD rates 1.454 percent
5 year CD rates 1.979 percent

Money market and savings account rates:
Bank money market rates and savings account rates 1.059 percent

Mortgage rates:
30 year mortgage rates 3.515 percent
15 year mortgage rates 2.871 percent
20 year mortgage rates 3.382 percent
30 year jumbo mortgage rates 3.475 percent
30 year FHA mortgage rates 3.503 percent

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

US Treasury rates:
Six month Treasury rate 0.36 percent
One year Treasury rate 0.48 percent
Two year Treasury rate 0.61 percent
Five year Treasury rate 0.95 percent
Ten year Treasury rate 1.37 percent

All bank savings rates and lending rates are based on surveys conducted by at the close of July 8th, 2016 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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