Interest Rate Round Up October 21, 2013
Now that the government is open again and the debt ceiling limit has been suspended until early February, short term bond rates have fallen back to normal levels. During this time long term bond rates barely moved higher and have since declined. Also during this time, short term CD rates, savings rates, and money market rates remained pretty much the same.
While the fight between Democrats and Republicans was raging on, 1 month bond rates soared 32 fold. Rates went from 0.01 percent just before the shutdown to 0.32 percent when it looked possible that the government would default on its debt. 1 month rates are now back down to 0.01 percent.
Bond Rates and Mortgage Rates Decline
10 year bond rates, which determine the direction of mortgage rates, have declined 15 basis points that past week to 2.60 percent. Mortgage rates also declined the past week and will this week as well. Mortgage rates today on 30 year conforming loans are averaging 4.23 percent. This week 30 year rates will fall back below 4.15 percent.
15 year conventional mortgage rates are currently averaging 3.33 percent, down from last week's average of 3.46 percent. 30 year jumbo mortgage rates are averaging 4.43 percent, down from the previous week's average jumbo mortgage rate of 4.57 percent. 15 year jumbo rates are averaging 3.81 percent, a decline from last week's average rate of 3.97 percent.
If you're searching and comparing mortgage refinance rates, these rates are all average rates but there are many lenders quoting rates well below the average rate. For example, the best mortgage rate in our database right now for 30 year conforming loans is at 2.75 percent with 2 mortgage points.
Best Short Term CD Rates
The best CD rates available on our 1 month certificate of deposit rate table before and after the crisis remain at 0.15 percent. The best rates on 3 month CD rates before and after remain at 0.45 percent. The highest CD rates on 6 month CD accounts, which are the best rate/deal combination remain at 1.00 percent.
1 year CD rates at banks are averaging 0.75 percent this week, an increase from last week's average 1 year CD rate of 0.73 percent. The highest 1 year rates available this week are currently at 1.04 percent with an APY of 1.05 percent, the same as last week's highest rate and yield.
Bank CD rates on shorter term CDs are lower than longer term CD rates but we recommend staying investing in shorter term accounts. The reason being is that interest rates in general are finally set to move higher in the coming year. Why lock in a low long term rate now when you can get higher short term rates?
Best Long Term CD Rates
2 year CD interest rates are averaging 0.94 percent this week, no change from last week's average 2 year CD rate. The best 2 year rates available are in our rate database are currently at 1.25 percent with an APY of 1.26 percent.
The best 3 year CD rates available in our database this week are at 1.50 percent with an APY of 1.51 percent. The FDIC's current average 3 year bank rate is much lower this week at 0.45 percent.
Moving onto 4 year rates, we see the FDIC's average rate this week on 4 year certificates of deposit offered by banks are at 0.58 percent. The best 4 year rates available in our database this week are at 1.75 percent with an APY of 1.76 percent. Average 5 year CD rates are at 0.75 percent and the best 5 year rates in our database are at 2.00 percent with an APY of 2.02 percent.
Best Savings Rates and Money Market Rates
Average savings rates and money market rates haven't changed at all the past several weeks. The average rate on account balances of at least $10k is at 0.45 percent, average for account balances of at least $25k is at 0.58 percent and the average on account balances of at least $50k is at 0.64%.
The best savings rates this week are at 1.00 percent and the best money market rates are slightly below at 0.90 percent.
FDIC Average Bank Interest Rates
FDIC Average Jumbo Interest Rates
Average U.S. Bond Rates
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