After yesterday’s rate reduction, we thought we would check to see how lending and deposit rates would be affected. We waited until the afternoon to make sure banks had a chance to update their offerings. This is a look at some of the best interest rates for deposits and loans from national banks and lenders.
Generally, a drop in the Fed Funds Rate and the Prime Rate do not have a direct effect on mortgage rates. However, yesterday the Federal Reserve indicated they would be buying mortgages and keeping rates low for a while. This seems to have dropped mortgage rates further since our Monday survey. Deposit rates have not dropped across the board, although we anticipate this will happen within the next week.
1 Year CD
3 Year CD
Rates are APY (Annual Percentage Yield)
Rates are APR (Annual Percentage Rate)
Assumptions: $320,000 conforming loan, 20% down, excellent credit, documented income,