Rate Update: Mortgages, Home Equity Loans, Money Markets, Checking, Savings, CDs, and Reward Checking

Mortgage Rates

A bad week for the homebuyers looking to lock-in 15-year and 30-year rates as economic reports drove up rates on fixed-rate mortgages. Freddie Mac reported that the nation’s average 30-year fixed-rate mortgage increased all the way to 6.42%. Analysts are forecasting higher rates continuing at least through the summer. The best news for the real estate market may be that the Congress-enacted higher jumbo-conforming loan limits (as high as $729,750 in some markets) is adding liquidity to the jumbo loan market and has already eased rates on jumbo loans closer to those of conforming loans. More mortgage rates and news.

Home Equity Loans

The good news for Americans with balances on a home equity line of credit is that with the prime rate set at 5% and the LIBOR down from the levels seen last year the lower benchmark rates used on most home equity loans are providing relief to borrowers on their monthly payments. Unfortunately the slow real estate market and mortgage market crisis has caused tighter lending standards and higher rates for those homeowners whose loan-to-home ratio has become higher. More home equity loan rates and news.

Money Market Rates

Many banks have increased their money market rates although the national average is still very low. EverBank is offering an intro-APY of 4.01% (good for 90 days) and Bank Mutual is offering a 3.75% yield. More money market rates.

Savings Rates

Typically savings account rates are the last deposit rates banks will adjust, but a few banks increased savings rates a quarter point. Many of the nation’s largest banks are still paying below 1% on savings account so make sure your savings account is earning at least 2.50%. Plenty of 3.50% and higher yields are available from online banks. See the highest bank savings rates.

Checking Account Rates

EverBank is the offering the highest yield on a checking account with their 4.01% intro-APY offer.

Certificate of Deposit Rates

CDs with terms between 2 years and 5 years have seen a good increase in rates this week as leading banks EverBank, US Bank, KeyDirect, Third Federal S&L, E*Trade Bank, and Discover Bank are just a few of the banks to bump up rates. Short-term rates under one year are still for the most part under 4%, but may see a bounce over 4% next week. Find the latest CD rates.

Reward Checking Account Rates

The yields on reward checking account have been mixed with several of the banks who were previously paying over 6% on their reward-style checking account dropping their top-tier rates, but a few others increasing to match the top yield in their local market. Reward checking accounts are worth investigating if your household uses debit cards, check cards, direct deposit and banks online. Find the reward checking account that best meets your needs.