Interest Rate Roundup
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 Jan. 31, 2007.
Mortgages
Rate: 6.42 percent (30-year fixed) Average points: 0.34
Mortgage rates took a big jump to their highest levels since the days when Karl Rove was bragging about keeping Republican control of Congress. That was in late October, to be more precise. Since mid-December, the economic news has been more good than bad overall, and that was the case this week. The highlight was the report of gross domestic product in the final three months of 2006. Total economic output increased during that period at an annual rate of 3.5 percent. That's much better than expected. But inflation was moderate. The strong economic growth, coupled with a fairly good inflation report, prepared the field for a modest increase in interest rates. The average 30-year fixed rate rose 10 basis points, to 6.42 percent. A basis point is one-hundredth of a percentage point. The average 15-year fixed, which is a popular option for refinancing, rose 12 basis points, to 6.19 percent. On bigger loans, the average jumbo 30-year fixed rose 7 basis points, to 6.63 percent. Adjustable-rate mortgages went up, too. The popular 5/1 ARM rose 9 basis points, to 6.3 percent, while the one-year ARM rose just 2 basis points, to 6.06 percent.
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Home equity products
Rates: 8.13 percent (line of credit); 7.93 percent (loan)
Home equity products barely moved. The average home equity line of credit fell 1 basis point, to 8.13 percent. Fixed-rate home equity loans rose 1 basis point, to 7.93 percent.
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Auto loans
Rates: 7.86 percent (60-month, new car); 8.68 percent (36-month, used car)
Car loan rates are in reverse -- going slowly but backward nevertheless. The 60-month new-car loan dropped 2 more basis points this week, to 7.86 percent. The 48-month loan also declined 2 basis points to 7.81 percent, and the 36-month loan is down 3 basis points, to 7.73 percent. Used-car loan rates also retreated 2 basis points: the 36-month used-car loan is 8.68 percent and the 48-month used-car loan is 8.79 percent. January sales are predicted to be higher this year than last, according to Edmunds.com, and others concur. Kelley Blue Book says traffic on its auto-pricing site has increased, too. If you're contemplating purchasing a new or used car, start with Bankrate's calculator to see how much you can afford.
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Certificates of deposit
Yields: 3.77 percent (1-year CD yield); 4.02 percent (5-year CD yield)
Another week of barely any movement in CD yields. This could start to change soon. The economy is looking pretty darn healthy and inflation, while sticking its neck out here and there, seems fairly tame. Additionally, Treasury yields climbed a bit recently and this all bodes well for CD yields in the weeks ahead. This week, the average one-year yield stayed right where it was last week, 3.77 percent. The six-month also didn't budge, coming in at 3.55 percent, and the five-year average dropped a basis point to 4.02 percent. On the jumbo side, the one-year held steady at 4.24 percent while the five-year dropped a basis point to 4.26 percent.
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Credit cards
Rates: 13.36 percent (standard fixed); 14.56 percent (standard variable)
The average interest rates on all but the standard fixed-rate card declined this week. The standard fixed rate is 13.36 percent, up 3 basis points from last week. The variable dipped to 14.56 percent, down from 14.72 percent. For all cards -- standard, gold and platinum -- the fixed rate edged downward -- 0.14 percent to 11.75 percent, and the variable rate went to 13.84 percent, from 13.93 percent. Prior to the holidays, it was reported that more consumers expected to use debit cards than credit cards during their shopping. This week TransUnion's TrueCredit.com and GfK Roper Public Affairs and Media released a study indicating that 35 percent of consumers made fewer purchases by credit card, down from 43 percent in 2005. Eleven percent said they had more debt this year and 29 percent say they had less. Bankrate's Financial Literacy program has a work sheet that will help you deal with debt.
By Holden Lewis, Ellen Cannon and Laura Bruce • Bankrate.com
Via BR
Mortgages
Rate: 6.42 percent (30-year fixed) Average points: 0.34
Mortgage rates took a big jump to their highest levels since the days when Karl Rove was bragging about keeping Republican control of Congress. That was in late October, to be more precise. Since mid-December, the economic news has been more good than bad overall, and that was the case this week. The highlight was the report of gross domestic product in the final three months of 2006. Total economic output increased during that period at an annual rate of 3.5 percent. That's much better than expected. But inflation was moderate. The strong economic growth, coupled with a fairly good inflation report, prepared the field for a modest increase in interest rates. The average 30-year fixed rate rose 10 basis points, to 6.42 percent. A basis point is one-hundredth of a percentage point. The average 15-year fixed, which is a popular option for refinancing, rose 12 basis points, to 6.19 percent. On bigger loans, the average jumbo 30-year fixed rose 7 basis points, to 6.63 percent. Adjustable-rate mortgages went up, too. The popular 5/1 ARM rose 9 basis points, to 6.3 percent, while the one-year ARM rose just 2 basis points, to 6.06 percent.
..............................................................
Home equity products
Rates: 8.13 percent (line of credit); 7.93 percent (loan)
Home equity products barely moved. The average home equity line of credit fell 1 basis point, to 8.13 percent. Fixed-rate home equity loans rose 1 basis point, to 7.93 percent.
..............................................................
Auto loans
Rates: 7.86 percent (60-month, new car); 8.68 percent (36-month, used car)
Car loan rates are in reverse -- going slowly but backward nevertheless. The 60-month new-car loan dropped 2 more basis points this week, to 7.86 percent. The 48-month loan also declined 2 basis points to 7.81 percent, and the 36-month loan is down 3 basis points, to 7.73 percent. Used-car loan rates also retreated 2 basis points: the 36-month used-car loan is 8.68 percent and the 48-month used-car loan is 8.79 percent. January sales are predicted to be higher this year than last, according to Edmunds.com, and others concur. Kelley Blue Book says traffic on its auto-pricing site has increased, too. If you're contemplating purchasing a new or used car, start with Bankrate's calculator to see how much you can afford.
..............................................................
Certificates of deposit
Yields: 3.77 percent (1-year CD yield); 4.02 percent (5-year CD yield)
Another week of barely any movement in CD yields. This could start to change soon. The economy is looking pretty darn healthy and inflation, while sticking its neck out here and there, seems fairly tame. Additionally, Treasury yields climbed a bit recently and this all bodes well for CD yields in the weeks ahead. This week, the average one-year yield stayed right where it was last week, 3.77 percent. The six-month also didn't budge, coming in at 3.55 percent, and the five-year average dropped a basis point to 4.02 percent. On the jumbo side, the one-year held steady at 4.24 percent while the five-year dropped a basis point to 4.26 percent.
..............................................................
Credit cards
Rates: 13.36 percent (standard fixed); 14.56 percent (standard variable)
The average interest rates on all but the standard fixed-rate card declined this week. The standard fixed rate is 13.36 percent, up 3 basis points from last week. The variable dipped to 14.56 percent, down from 14.72 percent. For all cards -- standard, gold and platinum -- the fixed rate edged downward -- 0.14 percent to 11.75 percent, and the variable rate went to 13.84 percent, from 13.93 percent. Prior to the holidays, it was reported that more consumers expected to use debit cards than credit cards during their shopping. This week TransUnion's TrueCredit.com and GfK Roper Public Affairs and Media released a study indicating that 35 percent of consumers made fewer purchases by credit card, down from 43 percent in 2005. Eleven percent said they had more debt this year and 29 percent say they had less. Bankrate's Financial Literacy program has a work sheet that will help you deal with debt.
By Holden Lewis, Ellen Cannon and Laura Bruce • Bankrate.com
Via BR
posted by auto at 10:23 AM
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