December Rate Roundup: CDs, Money Markets and Mortgages

by Dan Burrows | December 26, 2012 11:47 am

Benchmark interest rates jumped over the last month but, unfortunately for savers, it helped banks more than borrowers.

The yield on the 10-year Treasury note recovered sharply after a post-presidential election nosedive, jumping to 1.76% from 1.58% as recently as Dec. 6. Although that helped to stabilize rates on some popular savings products, many key rates took a step back over the past month.

Meanwhile, rates ticked up on some of the most popular housing products. So, on balance, the net effect was one that moved against savers — again.

The Federal Reserve’s plan to smother the yield curve — keeping both savings rates and borrowing costs at historic lows — broke in consumers’ favor back in November, but it turns out that was an aberration. As we’ve been noting for months[1] now, investors have lots of cash parked on the sidelines — and they’re still getting nothing for it.

However, if there’s a bright spot, at least savers aren’t getting any less interest on their cash deposits. Savings rates appear to have stabilized after months of trending downward. The national average interest rate on a money market account stood at 0.49% as of Dec. 25, unchanged from November or October, according to data from[2] (NYSE:RATE[3]).

Meanwhile, yields on jumbo money market accounts also stood firm. The national average of 0.64% was likewise unchanged from a month ago. Indeed, the average rate has now held firm for three consecutive month. That follows a three-month downtrend that saw it slip from 0.66% in August to 0.65% in September to 0.64% in October.

Mostly, though, rates were unchanged or declined. Here are rates on other popular savings products as of Dec. 25, according to Bankrate:

At the same time, although rates on some of the most common mortgage products were unchanged or moved in borrowers favors since last month, costs to refinance or borrow on homes were more likely to rise than fall.

Here are the average national rates offered on popular loan products as of Dec. 25, according to Bankrate:

  1. noting for months:
  3. RATE:
  4. BCS:
  5. CIT:
  6. DFS:

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