August 24th, 2007
Despite the higher rates that some of the bigger banks are offering (IndyMac, Countrywide, WaMu, etc.), most CD interest rates have retreated a bit.
Average short-term rates fell, 3?- 5 Basis Points (0.03% – 0.05%), but longer-term actually came up 5 – 10 BPs.? However, what do average rates really matter?? The highest rates we are seeing have fallen overall, across all terms.
As the credit crisis continues, banks smell blood in the water (some of it their own), and as they hope (push, prod) for a Fed rate cut in Septemember, they have begun to lower their rates.? A few weeks ago we saw longer-term rates reach towards the 5.60 – 5.65% range.? Today they are back in the 5.30 – 5.40% range.
I will be updating our CD interest rates later.
Keep looking up…
-- By +Chris Duncan