Interest Rates This Week: Mortgage Rates Decline and CD Rates Unchanged

Average 30 year mortgage rates today are at 4.30 percent, down from last week's average 30 year mortgage rate of 4.37 percent. Earlier last week, mortgage rates moved higher on a stronger than expected jobs report, showing the creation of 204,000 new private sector jobs, which was much higher than the expected number of 100,000.

There were no big moves in interest rates this week over last as the economic calendar was light, no surprising reports to drive interest rates much higher or lower. Average CD rates on 1 year certificates of deposit remain unchanged this week at 0.78 percent and the best CD rates available on 1 year CD accounts remains at 1.05% APY.

Direction of Interest Rates This Week

The direction interest rates take this week depends on the economic data scheduled to be released. The biggest reports this week are the Consumer Price Index (CPI) and Producer Price Index (PPI) numbers. The core CPI number scheduled to be released this Wednesday is expected to come in at 0.1 percent and the core PPI number to be released on Thursday is also expected to come in at 0.1 percent.

Stronger than expected inflation at either the consumer level or producer level would send bond rates higher. Mortgage rates would quickly follow higher but CD rates would remain near current levels. Weaker than expected numbers would send bond rates and mortgage rates lower whereas CD rates wouldn't change at all.

We won't see higher CD rates until the Federal Reserve increases the federal funds rate, which isn't expected to happen until sometime in the summer of 2014. Below is a list of average CD rates and the best CD rates available in our database right now. We have listed both short term and long term CD rates but since rates are moving higher next year, we recommend staying invested in shorter term certificates of deposit of 6 months or less.

Current CD Rates

Average CD Rates

• 3 Month Average CD Rate 0.23%
• 6 Month Average CD Rate 0.45%
• 12 Month Average CD Rate 0.78%
• 24 Month Average CD Rate 1.00%
• 60 Month Average CD Rate 1.38%

Best CD Rates

• Best 3 Month CD Rate 0.45%
• Best 6 Month CD Rate 1.00%
• Best 12 Month CD Rate 1.05% APY
• Best 24 Month CD Rate 1.26% APY
• Best 60 Month CD Rate 2.02% APY

Mortgage Rates Today

Below are lists of average mortgage rates and the lowest mortgage rates available on our rate tables.

Average Mortgage Rates

• 30 Year Mortgage Rate 4.30%
• 15 Year Mortgage Rate 3.41%
• 30 Year Jumbo Mortgage Rate 4.49%
• 15 Year Jumbo Mortgage Rate 3.80%
• 5 Year Conforming Adjustable Mortgage Rate 3.54%
• 5 Year Jumbo Adjustable Mortgage Rate 2.88%

Best Mortgage Rates

• 30 Year Conforming Mortgage Rate 3.75% With 1.579 points
• 15 Year Conforming Mortgage Rate 2.75% With 1.27 points
• 30 Year Jumbo Mortgage Rate 4.00% With 0.639 points
• 15 Year Jumbo Mortgage Rate 3.125% With 0.695 points
• 5 Year Conforming Adjustable Mortgage Rate 2.125% with 1.675 points
• 5 Year Jumbo Adjustable Mortgage Rate 2.125% with 0.963 points

Mortgage Rates Headed Higher in 2014

Interest rates are headed higher in the future, make no mistake. Current mortgage rates, while down slightly week over week, are headed higher in 2014. By mid year, 30 year conforming mortgage rates will be above 5.00 percent and by the end of 2014, 30 year mortgage rates will be in the 5.50 to 6.00 percent range.

If you're considering buying a home, now is the time to do so. Frankly, earlier this week was a better time because rates and home prices were both lower than current levels. Now is also a good time if you're thinking about refinancing a loan. You might have tried refinancing in the past but didn't have enough equity in your home.

Average prices on homes are up 12 percent year over year so you might now be able to refinance. If you currently have a 30 year loan, you should try to refinance to a 15 year loan. You will save tens of thousands or even hundreds of thousands of dollars in interest payments, plus you'll own your home outright in half the time.

You can use our mortgage calculator to see the difference.

CD Rates Headed Higher Next Year

CD rates have been at or near record lows for just about 5 years now. Anyone who has opened a CD account over the past several years has been shocked at how low rates are. Next year, CD interest rates will be heading higher and by the summer of 2014, the highest 1 year CD rates will be in a range of 1.50 percent to 2.00 percent.

By the end of 2014, the highest 1 year CD rates will be in a range of 2.50 percent to 3.50 percent. We can't stress this point enough, since rates are headed higher by no means should you lock into a CD term of more than 6 months right now. Besides, you really don't earn much more interest on longer term accounts right now since the rate curve is flat. The best 6 month CD rates available in our rate database are at 1.00 percent and the best 1 year CD rates are at 1.05 percent APY.

If you have a CD maturing, check on the maturity date - banks automatically roll over maturing CDs into new CD accounts with the same term.