RECEIVE FREE WEEKLY RATE UPDATES

Receive the best bank rates every week right to your inbox.

Rates and Information to Help You Save & Borrow

AVERAGE LOAN RATES

30 Year Fixed Mortgage 4.27% APR
15 Year Fixed Mortgage 3.51% APR
5 Year ARM 2.96% APR
Home Equity Line 4.36%
10 Year Home Equity 5.65%
3 Year Auto Loan 3.15%

INTEREST RATE ANALYSIS

By Sol Nasisi
July 3, 2014 - The Labor Department reported strong employment growth of 288,000 jobs in June and a revised 244,000 gain the prior month. The large growth in jobs helped push the unemployment rate to 6.1%, the lowest in almost six years. Ten year treasury interest rates rose to a two-month high as bond traders speculated the strong jobs numbers will eventually translate into inflation. This continues the up-and-down flow of the economy, with negative growth in the first quarter rebounding to what will be stronger growth in the second and third quarters. Until we can string more than two or three months of this together though, it's hard to see this as more than just the normal oscillations we've experienced over the last five years. If the July numbers are higher or on par with June, that could be telling that the economy is finally beginning to break its oscillatory pattern and that interest rates may begin to move higher.

On a related note, we've seen several online banks raise their CD rates over the last month. Average 3 and 5 year CD rates continue to move up. At the same time, mortgage rates have dropped over the past two months. For mortgages, the spike that we saw when the Fed began to taper is coming down.

My outlook: Online savings account rates may increase by 20-30 percentage points by the end of 2014. I project the highest online savings account next year will yield 1.75% APY. Short term savings rates will edge up slightly but longer term CDs (3-5 year) will continue the trend we have seen over the past six months and continue to move up. I expect we'll see the biggest increases in the longer duration CDs.

You can read more of my thoughts on bank rate trends on my Bank rate update.

CD & ONLINE SAVINGS RATE TRENDS

Financial products of all nature bear inherent risks and this website is not a financial advisory service. BestCashCow.com provides information related to rates on US-based savings accounts, CD (certificate of deposit) rates, money market accounts, money market funds, government bonds, other bonds and income producing securities, commodities, equity securities, mortgage rates, home equity rates and auto loans rates, free of charge to internet users for their independent use. The accuracy of information on the website is not guaranteed, and no financial product of any sort is endorsed. On certain web pages, BestCashCow.com may contain discussion and analysis of the risks and rewards associated with certain financial instruments, including equity instruments, or may link to other pages with such discussions. The information should not be construed to provide investment advice. In fact, users are specifically warned against following any advice related to specific instruments, including advice that may be on other web pages linked from BestCashCow.com. Please seek personalized advice on the risks and applicability to your own circumstances of any financial product from a qualified professional. © BestCashCow.com, LLC, 2014.