Does the old axiom “inch by inch, life’s a cinch, but yard by yard, life is hard” apply to the certificate of deposit market these days?
It would appear so, as CD rates have apparently stopped their steady decline, and are starting to level off and even creep back up, basis point by basis point. It’s a trend that bank investors hope will be a momentum-gathering march to significantly higher rates during the second half of 2010.
The good news is that March 2010 appears to be the low-water market for CD rates during the Great Recession. The BankingMyWay Weekly CD Rate Tracker averaged a decline each month dating back to the start of 2009. But April seems to be telling a different story, with rates slightly down for the first week of the month and leveling out (and even rising in some categories, like the six-month and the 60-month CD) for the second week of April.
Description This Week Last Week
60-Month CD 2.118% 2.117%
48-Month CD 1.809% 1.813%
24-Month CD 1.241% 1.243%
12-Month CD 0.783% 0.784%
Six-Month CD 0.523% 0.521%
Three-Month CD 0.337% 0.338%
The good news, if you can call it that, is that interest rates are, by and large, on the rise this spring.
Mortgage rates are up to 5.29%, according to the BankingMyWay Weekly Mortgage Rate Tracker, after flirting for months below the 5% mark. Additionally, auto loan interest rates, as measured by the BankingMyWay National Auto Loan Tracker are up more than 6.6%. National auto loan rates averaged anywhere from around 3.25% to 4.75% as of late 2009 (according to figures from the Federal Reserve) making it significantly more pricey to buy a new car these days.