Interest Rates Fall, But For How Long?
Last week ended with rates falling in many areas, most notably for used cars loans and variable-rate credit cards. Also of note: mortgage rates fell considerably, continuing a steady downward trend that began in 2008.
But how low can they go? There’s no telling, exactly. Federal Reserve Chairman Ben Bernanke said in the past that the Fed will continue efforts to drive interest rates down through 2013 but, according to reports, several member of the agency’s policy-making committee have expressed interest in ending their program of purchasing of treasury and mortgage-backed before the end of the year. That could mean a slowdown to the housing recovery and, more immediately, an end to great rates for consumers.
Here’s a look at where rates stand today, if you’re in the market for a new car, home or credit card.
Auto Loan Rates
Rates for 48-month new-car (4.07%) and 60-month new-car (4.15%) loans were unchanged last week. Used-car rates saw significant movement, however. The average rate for a 36-month used-car loan fell to 4.77% from 4.84% just a week before.
Credit Card Rates
The average APR for fixed-rate credit cards fell a 0.69 percentage points to 13.33%. On the other hand, the average APR for variable-rate credit cards rose almost equally, from 14.59% to 15.13%, a total of 0.54 percentage points.
National Mortgage Rates
Average rates on 30-year fixed-rate mortgages fell 0.07 percentage points to 3.6% last week. Fifteen-year fixed-rate mortgage fell, as well, to 2.89% and rates for 30-year jumbo mortgages to 4.04%.
CD Rates
Finally, for those looking to save for a rainy day, the average yield of a five-year CD ticked down to 0.88%. The average five-year jumbo yield followed the trend, falling just 2 basis points to 0.89%. When it comes to short-term CDs, rates were unchanged from the week prior: one-year CD yields are at 0.27% and a one-year jumbo CD yields 0.3%.
This week’s roundup comes from data reported last week, ending with Thursday, Jan. 17, 2013 and reflecting activity from Jan. 10-17, 2013.
Photo Courtesy,Victor1558
