Weekly rate roundup
By Greg
McBride, CFA • Bankrate.com
Here's a look at the state of interest rates
on five common consumer banking products and the latest rates
from Bankrate.com's weekly national
survey of large banks and thrifts conducted March 23,
2005.
|
| .............................................................. |
Mortgages
Rate: 6.15
percent (30-year fixed); Average Points: 0.37
 Mortgage
rates keep on climbing, with fixed-rate mortgages hitting the
highest point since July. The average 30-year fixed-rate mortgage
jumped from 6 percent to 6.15 percent, and is up from 5.59 percent
six weeks ago. The 15-year fixed-rate mortgage popular for refinancing
climbed from 5.56 percent to 5.67 percent, while the average
rate for the jumbo 30-year fixed-rate mortgage increased from
6.18 percent to 6.35 percent. Adjustable-rate mortgages were
no haven, with the average 5/1 ARM rising to 5.58 percent and
the one-year ARM hitting a two-and-a-half year high of 4.65
percent. Mortgage rates climbed this week following the Federal
Open Market Committee's unexpectedly direct comments about inflation
and a sharp increase in core consumer prices. Inflation is the
nemesis of bond investors, and when bond investors sell, yields
on both bonds and mortgage rates rise. |
| .............................................................. |
Home
equity products
Rates: 5.91 percent (line of credit); 7.02
percent (loan) 
Home equity loan rates moved above 7 percent, with the average
settling at 7.02 percent. This is up from 6.99 percent last
week and 6.96 percent on March 2. This is the first time home
equity loan rates have been above the 7 percent mark since Bankrate.com
switched to a $30,000 loan amount with the July 21 survey. Meanwhile,
rates on home equity lines of credit (HELOCs) took a rare pause,
with the average rate remaining at 5.91 percent. Don't get accustomed
to it, as HELOC rates will resume the climb now that the Fed's
seventh interest rate hike has pushed the prime rate to 5.75
percent. |
| .............................................................. |
|
|
Auto
loans
Rates: 7.59 percent (48-month, new car); 8.37 percent (36-month,
used car)
Rates for both new- and used-car loans dipped this week as Bank
of America cut rates in Texas. For three-year, four-year, and
five-year new-car loans, Bank of America slashed rates from
9.2 percent to 7.7 percent in the Houston and Dallas markets
of the survey. On three-year used-car loans, Bank of America
slashed the rate from 12.2 percent to 10.7 percent. Aside from
Bank of America's move in Texas, rate changes for auto loans
were pretty sparse. The average used-car loan rate fell from
8.39 percent to 8.37 percent. Rates for new-car loans fell by
the same amount, with the average three-year, four-year, and
five-year new-car loan rates retreating to 7.56 percent, 7.59
percent, and 7.62 percent, respectively. |
| .............................................................. |
|
Certificates
of deposit
Rate: 2.5 percent (1-year CD yield);
3.7 percent (5-year CD yield) 
Borrowers may be reeling from higher interest rates, but savers
are reaping the benefits. Yields on all maturities continue
to rise, with the longer maturities showing particular improvement
in recent weeks. The average five-year CD yield is now 3.7
percent, up from 3.59 percent five weeks ago. Improvement
on shorter maturities remains consistent, with the average
one-year CD yield of 2.5 percent a full percentage point higher
than when the Fed began boosting rates in June 2004. However,
there is both good news and bad news for savers. The good
news is that interest rates are forecast to continue climbing.
The bad news is that higher inflation may negate the effect
of higher interest earnings. Investors need to keep a wary
eye on inflation.
|
| .............................................................. |
Credit
cards
Rates: 12.93 percent (standard fixed);
13.84 percent (standard variable)
The average standard variable and platinum
variable rates posted notable increases for a variety of reasons.
The average standard variable rate was influenced by the addition
of a new bank to the survey, while the platinum variable average
was impacted by a change in the survey grouping, the merger
necessitated changeover from Bank One to Chase-issued cards
in several markets, and, oh yes, a credit card repricing. The
average standard variable rate is now 13.84 percent while the
average platinum variable rate increased to 12.87 percent. On
gold variable and fixed cards -- no longer a large category
-- the averages were influenced solely by additions and deletions
to the survey, with the averages now 13.95 percent and 13.93
percent, respectively. The average platinum fixed inched higher
to 11.09 percent and there was no change in the average standard
fixed card rate, which remains at 12.93 percent. |
|
| |
| -- Posted: March 25, 2005 |
|
|
|
|
|
|
 |
|
 |
|
|
