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Posts Tagged With 'Rates'

CD Rates Move Higher as Mortgage Rates and Credit Card Meander

As July started to come to a close, CD rates finally got off their perch and started to follow the higher yields of the mid and long term bond rates that we have experienced in the previous weeks and marched slightly higher.?? Mortgage rates experience no such delay in pricing or inelasticity and with little action in the mortgage bond market over the course of the week; consumer mortgage rates were little changed.?? Credit card rates held steady as the top credit card companies continue to print cash with high borrowing costs pushed on to the credit card holders in the form of relatively high credit card rates, low borrowing costs for the credit card issuer and lower delinquency rates and charge off figures.?? This formula leads to a cash generating machine.

As the week ending July 26 came to a close, the Treasury market showed very little change on the short end of the yield curve and only modest rate increases on the long end.?? Six month Treasury rates and one year Treasury rates were unchanged on the week with the six month Treasury rate holding at 0.07% and the one year remaining at 0.11%.?? Long term Treasuries were a bit more active with the five year Treasury rate popping up five basis points to 1.36% and the ten year jumping eight basis points to 2.58%.

The change in Treasury yields had little impact on new home loan borrower???s mortgage rates.?? 30 year mortgage rates at the nation???s top bank mortgage lenders barely budged this past week.?? The average rate on the 30 year conventional home loan was nudged up to 4.501% from 4.506 percent in the previous week.???? FHA mortgage rates slipped by a slim margin as did the 30 year jumbo mortgage rates.?? The average rate found on the FHA loans with a 30 year term was 4.238%, compared to 4.243 percent in the prior week.?? 30 year jumbo loan rates slipped to 4.429% after closing at 4.461 percent in the week earlier.????

Most short term certificates of deposit rates were little changed over the course of the week with the big rates changed coming from the longer term maturities.?? The CD rate index was up by one full basis point to break past 1.00% for the first time in several weeks.?? The CD rate index ended the week at 1.004%.????

The best three month CD rates and six month CD rates were unchanged this week and the one year term certificates were up by just 1/1000th of a percent.?? The top two year CD rates increased by 5/1000ths of a percent to an average interest rate of 1.130%.?? Five year CD rates made in two weeks in a row with major advances in the average yield.?? The rate coming from the top ten highest five year CD rates was ratcheted up to 2.58% from 2.50% in the preceding week.

Bank money market account rates, savings account rates and credit card rates were unchanged for the week.?? The top ten highest savings account rates and money market rates remained at 0.903 percent for the second consecutive week.?? The best credit card rates on the market stayed at 13.78 percent, this was the second consecutive week of non change for this bank rate as well.

The weekly bank rate survey provides a detailed report on bank savings rates and lending rates by consumer rate category.?? The most current survey is for the week ending July 26, 2013.?? The weekly rate survey presented the following interest rates and their changes for mortgage rates, CD interest rates, credit card rates, money market rates, savings account rates and Treasury rates.

Bank Rates Market Recap for July 26, 2013

CD interest rates:
Composite CD interest rate index 1.004 percent (up .01 percent)??
3 month CD rates 0.417 percent (unchanged)??
6 month CD rates 0.703 percent (unchanged)??
1 year CD rates 0.981 percent (up .001 percent)??
2 year CD rates 1.130 percent (up .005 percent)??
5 year CD rates 1.787 percent (up .04 percent)??

Money market and savings account rates:
Bank money market rates and savings account rates 0.903 percent (unchanged)

Mortgage rates:
30 year mortgage rates??4.501 percent (down .005 percent)????
15 year mortgage rates 3.604 percent (up .019 percent)??
20 year mortgage rates 4.378 percent (up .015 percent)??
30 year??jumbo mortgage rates 4.429 percent (down .032 percent)??
30 year??FHA mortgage rates 4.238 percent (down .005 percent)

Credit card rates:
Credit card rates for new credit card offers 13.78 percent (unchanged)

US Treasury rates:
Six month Treasury rate 0.07 percent (unchanged)??
One year Treasury rate 0.11 percent (unchanged)
Two year Treasury rate 0.31 percent (down .01 percent)
Five year Treasury rate 1.36 percent (up .05 percent)
Ten year Treasury rate 2.58 percent (up .08 percent)

All bank savings rates and lending rates are based on surveys conducted by at the close of July 26, 2013 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.????

Additional bank rate data is available to help consumer shop and compare mortgage rates, CD rates and checking accounts for the week ending July 26, 2013 at the following rate tables:?? 9 month CD rates, 3 year CD rates, 4 year CD rates, 10 year mortgage rates, VA mortgage rates, ??best interest checking accounts.

IMF warns over rock-bottom interest rates

The International Monetary Fund has warned central banks to be alert to potentially damaging side-effects of ultra-low interest rates and “unconventional” measures to boost growth after the deep slump of 2008-09.

While backing the use of exceptional action to prevent the collapse of the financial system, the Washington-based organisation said risks would increase the longer the stimulus was kept in place.

The IMF used a chapter in its latest global financial stability report to note that rock-bottom interest rates and purchases of government bonds might be shifting instability from banks to other parts of the financial system or to other parts of the global economy.

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Bank of England expected to hold interest rates and QE

The Bank’s Monetary Policy Committee (MPC) is forecast to hold interest rates at a record low of 0.5pc while its quantitative easing (QE) programme will stay at ??275bn after October’s shock increase.

The MPC pumped an extra ??75bn into the economy last month amid signs the recovery was heading to the rocks, and while the picture has continued to worsen, economists do not expect further action until early next year.

Howard Archer, chief UK and European economist at IHS Global Insight, said: “The fact that all nine MPC members favoured a ??75bn dose of QE – and even considered a ??100bn helping – at their October meeting reinforces belief that they will be prepared to dish out more stimulus if the economy fails to rally.”

Purchasing Managers Index data for October on the powerhouse services sector and manufacturing industry released earlier this week both pointed towards the UK economy contracting in the final three months of the year.

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The Best Way To Lower Credit Card Interest Rates

Many people believe that lowering their credit card interest rates is an impossible task and they do not even try to get the rate that they pay reduced.?? They would be surprised to learn that it is possible for anyone to lower their credit card interest rates by using some simple and efficient methods.?? One of the best ways to lower these interest rates is to negotiate with the creditor directly and ask for the rate to be lowered.

How Are Interest Rates Determined?

The interest rate that is assigned to a credit card account is determined by the credit card issuer and based on a complicated formula that assigns a level of risk to the account based on the credit score and payment history of the account holder.?? Different types of credit cards will have different minimum and maximum interest rate levels, with the lower interest rates going to the individuals with the highest credit scores and the higher interest rates offered to the applicants with the lowest scores.?? There is a legal limit to the amount of interest a credit card issuer can charge and many sub-prime credit card lenders charge this maximum.

Lowering The Interest Rate

If the account holder has been doing business with the company for several years or more, they may be able to lower their interest rate by negotiating directly with a representative of the company.?? This representative will be able to look up information about the account, including how long the account has been opened and whether the account has remained in good standing during that time.?? If the representative is able to see a clear pattern of responsibility and timely payments, they will be more likely to flag the account for an interest rate reduction.

A significant improvement in the account holder???s credit score can also result in a reduction in the amount of interest a person pays for their credit cards.?? Individuals that regularly check their credit report and credit score should contact the companies that issue their credit cards when their credit score reaches a new level, such as moving from fair to good or good to excellent categories.?? A reduction of a few percentage points in the interest rate for a credit card can save the person thousands of dollars over the years that they hold the account.

Tri-Rivers Federal Credit Union CD Rates Deal of the Day: 6-Month CD at .65% APY

Tri-Rivers Federal Credit Union is currently offering a stellar rate on their CD rates. Tri-Rivers Federal Credit Union is a member-owned credit union offering members the opportunity to meet their personal savings goals, which is why they are providing a 6-month CD at .65% APY.

Only members are eligible to open a certificate of deposit account with this credit union. There is a $500 minimum deposit in order to receive the interest on this account and rates may change at any time. There may also be a penalty for early withdrawal.

Tri-Rivers Federal Credit Union has been serving members for the past 47 years. They provide excellent financial services at a very low-cost to help families and members reach financial freedom and success. You may be eligible for membership with Tri-Rivers CU if you live, work, study or worship within the seven-county area around the Capital City–Montgomery, Butler, Crenshaw, Autauga, Elmore, Macon and Lowndes.

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Texas Capital Bank CD Rates Deal of the Day: 6-Month CD at .60% APY

Texas Capital Bank is a front-runner in providing excellent financial services for individuals, families and businesses in Texas. Among this bank’s great offers are some of the best CD rates currently available, like the six month CD rate of .60% APY.

In order to be eligible for this CD rate, there is a $1,000 minimum balance requirement when opening a CD account. There is also an early withdrawal penalty on accounts that have not yet matured. The APY is calculated based on a one-year time frame. If you allow your interest to add back to the principal over a one-year time period, the APY is what you will receive.

Texas Capital Bank is a commercialized bank that is able to help you solve your financial issues. They have some of the best and most experienced bankers in the entire state that are available to help you get your deals settled quickly as well as assist you in reaching your personal wealth goals.

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