A slower housing market helped savers do a little better at the expense of lenders in May. Interest rates on some of the most popular savings products barely moved even as mortgage rates slipped.
The S&P 500 may have crossed 1600 for the first time ever in May, but bonds had more fun. The yield on the benchmark 10-year Treasury note fell to 2.48% from 2.65% at the end of April. That’s the lowest level for Treasurys in 11 months.
A the same time, softness in the housing market did its own part to tamp down mortgage rates. Indeed, mortgages haven’t been this cheap since late 2013. Bucking the trend were rates to refinance, a financial move that’s gaining in popularity thanks to higher housing prices and less household debt.
The net result was that savers came out on top, albeit barely.
Best Interest Rates on Savings Products
Here are the best interest rates (shown in annual percentage yields) on some popular savings products (with a minimum deposit of less than $10,000, except for jumbo CDs) as of May 30, according to Bankrate.com (RATE):
- National Average Rate on Interest Checking Account: 0.47%, down from 0.48% a month ago
- Best APY on 1-Year CD: 1.1% (EverBank [EVER], $1,500 minimum), up from 1.06% a month ago
- Best APY on 3-Year CD: 1.45% (Intervest National Bank [IBCA], $2,500 minimum), no change for eight months
- Best APY on 5-Year CD: 2.23% (EverBank, $1,500 minimum), down from 2.3% a month ago
- Best APY on 5-Year Jumbo CD: 2.3% (CIT Bank [CIT], $100,000 minimum), no change for two months
Current Mortgage Interest Rates
Rates on the most popular mortgage products mostly declined over the course of the month as home-buying slowed down. At the same time, refinancing once again picked up. Here are the current mortgage interest rates (overnight national average) on popular loan products as of May 30, according to Bankrate:
- 30-Year Fixed Mortgage: 4.13%, down from 4.25% a month ago
- 15-Year Fixed Mortgage: 3.15%, down from 3.29% a month ago
- 5/1 Adjustable-Rate Mortgage: 3.3%, down from 3.39% a month ago
- 30-Year Fixed Mortgage, Refi: 4.13%, down from 4.42% a month ago
- $30,000 Home Equity Line of Credit: 4.92%, up from 4.75% a month ago
- $30,000 Home Equity Loan: 6.19%, down from 6.21% a month ago