So if you're one of the lucky few with the credentials to get a loan at current rates (and you're not scared off by the prospect of home values dropping even further), should you go with an ARM or a fixed mortgage? Roberts says that there's a strong possibility that mortgage rates will be significantly higher in five years, so unless you plan on moving within that period -- say, because you're in the military or another line of work that requires you to move frequently -- you're probably better off with long-term fixed-rate mortgages, which are also at historically low rates. And most importantly, he cautions those considering an ARM to make sure they can afford the payments they're committing to. ARMs weren't the only loan product to get more attractive to consumers last month. Personal unsecured loans likewise hit a low, dropping 11 basis points to settle at 12.29%. Also, 48-month new auto loans hit their lowest rate since at least January 2007, dropping 13 basis points to 4.61%. Only 36-month home equity loans rose this month, seeing a bump of six basis points after hitting a low last month. The national average rate stands at 6.62% among banks included in the Credit Power Index calculation. Deposits were a very different story. As has become customary, CD rates once again fell in June, with 12-month CDs slipping below 0.5% for the first time to settle at 0.48%. The next milestone to fall may be the 1% mark for 36-month CDs; as of the end of June that rate stood at 1.04%, down more than three percentage points since January 2007. On the whole, the significant drop in loan rates outweighed the decline in deposits, making June another good month for the interest rate climate for American consumers according to the Credit Power Index. "The Index continued its decline for the sixth straight month, though the decline appears to be slowing," confirms RateWatch general manger Rachelle Zorn. "During June it dropped by 18 basis points, slowing for the second straight month. It now sits at 22.51." By comparison, the index had fallen by a combined 61 points in the preceding two months, so June's comparatively modest improvement suggests that the uptick in the consumer interest climate may not be as swift as anticipated. Regardless, it's encouraging to see interest rates continuing to go in the right direction for consumers -- or at least for those looking to borrow. >To submit a news tip, email: firstname.lastname@example.org. Follow TheStreet.com on Twitter and become a fan on Facebook.