Here’s a nice change of pace when it comes to record-low interest rates: For the most part, both savers and borrowers caught a break this month.
The stock market took a nosedive after the U.S. election, and so did the yield on the benchmark 10-year Treasury note. That helped mortgage rates plumb new record lows, but happily for savers, yields on many major products either stabilized or even ticked up.
The risk-off trade and the Federal Reserve’s plan to smother the yield curve — keeping both savings rates and borrowing costs at historic lows — broke in consumers’ favor in November. As we’ve been noting for months now, investors have lots of cash parked on the sidelines — but they’re still getting nothing for it.
However, if there’s a bright spot, savings rates stabilized after months of trending downward. The national average interest rate on a money market account stood at 0.49% as of Nov. 26, unchanged from October, according to data from Bankrate.com.
Meanwhile, yields on jumbo money market accounts also stood firm. The national average of 0.64% was likewise unchanged from a month ago. That snaps a three-month downtrend that saw the rate slip from 0.66% in August to 0.65% in September to 0.64% in October.
Here are rates on other popular savings products as of Nov. 26, according to Bankrate:
- National Average Rate on Interest Checking Account: 0.53%, up from 0.52% a month ago
- Best Rate on Savings Account: 1.05% (Sallie Mae, no minimum), no change
- Best Rate on 1-Year CD: 1.05% (Sallie Mae, $2,500 minimum), down from 1.1% (CIT Bank [NYSE:CIT], $25,000 minimum) a month ago
- Best Rate on 3-Year CD: 1.35% (Discover Bank [NYSE:DFS], $2,500 minimum), down from 1.42% (CIT Bank, $1,000 minimum) a month ago
- Best Rate on 5-Year CD: 1.8% (CIT Bank, $1,000 minimum), up from 1.75% (Discover Bank, $2,500 minimum) a month ago
- Best Rate on 5-Year Jumbo CD: 1.85% (CIT Bank, $100,000 minimum), no change
At the same time, rates on some of the most common mortgage products fell sharply since last month, while costs to refinance or borrow on homes likewise declined.
Here are the average national rates offered on popular loan products as of Nov. 26, according to Bankrate:
- 30-Year Fixed Mortgage: 3.45%, down from 3.5% a month ago
- 15-Year Fixed Mortgage: 2.86%, down from 2.88% a month ago
- 5/1 Adjustable-Rate Mortgage: 2.78%, down from 2.99% a month ago
- 30-Year Fixed Mortgage, Refi: 3.41%, down from 3.46% a month ago
- $30,000 Home Equity Line of Credit: 4.55%, down from 4.56% a month ago
- $30,000 Home Equity Loan: 5.61%, no change