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SAVINGS
Regular Savings	0.47	0.32	CUs by 15 bp
Interest Checking	0.33	0.25	CUs by 8 bp
Money Market	0.92	0.58	CUs by 34 bp
1 Year CD	1.73	1.42	CUs by 31 bp
CONSUMER LOANS
Reg Credit Card	11.65	12.61	CUs by 96 bp
48 Mo New Car	5.25	6.61	CUs by 136 bp
48 Mo Used Car	5.52	7.14	CUs by 162 bp
36 Mo Unsecured	10.58	12.49	CUs by 191 bp
MORTGAGE LOANS
Home EQ LOC	4.43	4.92	CUs by 49 bp
1 Yr ARM	4.75	4.72	Bks by 3 bp
30 Yr Fixed	5.59	5.56	Bks by 3 bp
All Data Current as of 07/02/2009. Based on 16869 institutions. Note: Average rates are listed; individual rates will vary. (See Datatrac Research Standards)			bp=Basis points (100 bp=1%)

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Market News

MADISON, Wis. (7/2/09)

Pending home sales posted a fourth consecutive gain in May, as strong housing affordability and the first-time homebuyer tax credit boosted activity, the National Association of Realtors (NAR) reported Wednesday (realtor.org July 1). The trade group's Pending Home Sales Index rose by 0.7% to 90.7 in May following a 7.1% surge in April. The May index was 6.7% higher than in May 2008. NAR's Housing Affordability Index remained near a record high in May. The index fell to 171.6, from 178.8 in April, which was the highest on record going back to 1970. "Under these conditions, the typical family would devote only 14.6% of gross income to mortgage principal and interest, which is one of the lowest percentages on record," noted NAR Chief Economist Lawrence Yun ...
Mortgage activity retreated last week, according to a report by the Mortgage Bankers Association (mbaa.org July 1). The trade group's Market Composite Index declined by 18.9% to 444.8. The Refinance Index tumbled 30% to 1482.2, while the Purchase Index dropped 4.5% to 267.7. Mortgage rates declined last week. The 30-year, fixed-rate mortgage dropped 10 basis points to 5.34%, and the one-year, adjustable-rate mortgage edged down 2 basis points to 6.52%. Continued job losses, rising foreclosures, and tight credit remain obstacles to any recovery in the housing market, noted Moody's Economy.com (July 1). However, the research firm said home sales probably will trend upward slowly in the months ahead, and home prices should begin recovering early next year ...
Constructing spending declined by 0.9% to a seasonally adjusted annual rate of $964 billion in May, the fourth decline in the past four months. Construction spending was down 11.6% from a year earlier. Residential construction dropped 3.5% in May, while public construction decreased 0.6%. Construction probably will remain weak in the months ahead amid a glut of homes on the market due to foreclosures, and as job losses continue ...
In a glimmer of hope for the job market, the number of job cuts announced in June declined for a fifth consecutive month, after hitting a 7-year high in January. The outplacement firm Challenger, Gray & Christmas reported that job-cut announcements by major U.S. firms totaled 74,393 in June, down 33% from May and the lowest total since March 2008. Announcements were 9% lower than in June 2008. "This recent drop-off may be indicative of an overall downward trend in layoff activity," said John Challenger, chief executive of the Chicago-based firm. However, states hit with declining tax revenue and soaring deficits continue to lay off workers. The government/non-profit sector announced 19,438 job cuts in June, the highest of any sector. At 7,882, the auto sector had the second-highest total of planned job cuts last month. "The government and non-profit sector will continue to be a source of heavy job cutting for the remainder of the year," said Challenger. "Meanwhile job cuts in financial services, industrial-goods manufacturing, computer and consumer products have slowed considerably and may continue to do so with the economy stabilized," he added (Bloomberg.com and Moody's Economy.com July 1) ...
The manufacturing sector contracted at a smaller-than-expected pace in June. The Institute for Supply Management reported that its manufacturing index rose to 44.8 in June, from 42.8 in May but still below the 50 level that suggests expansion. In a hopeful sign, the production index rose to 52.5 in June, from 46 in May. It was the first growth reading following nine months of decline. On the downside, new orders declined to 49.2 in June, after expanding in May for the first time in 17 months. "A slow recovery for manufacturing is forming," said Norbert Ore, chair of the group's manufacturing business survey committee (Associated Press via Yahoo! News July 1) ...

News of the Competition

MADISON, Wis. (7/2/09)

The Office of Thrift Supervision and the Federal Deposit Insurance Corp. have fined two subsidiaries of American Express Co. $250,000 each. American Express--the largest U.S. credit card company by purchases--agreed to pay the $500,000 in fines and $3.5 million in refunds after its actions caused customers to incur penalties on convenience checks. American Express sent out convenience checks so customers could obtain money from their credit card accounts. The company then lowered participants' credit limits and refused to honor some of the checks--which set off penalties for the checks' users. American Express will pay the refunds without admitting any wrongdoing, according to a Tuesday regulatory filing (Bloomberg.com June 30) ...
Citigroup Inc. raised interest rates on up to 15 million U.S. credit card accounts it co-brands with retailers such as Sears before restrictions on such increases could take place early next year, Financial Times reported. "We have adjusted pricing and card terms for some customers as part of our regular account reviews," Citigroup said in a statement. "This is an ongoing process to ensure we offer terms, interest rates, credit lines and products, based on individual needs and risk profiles." The changes also are a response to the significantly higher cost of doing business in the credit card industry, as the company strives to keep a broad availability of credit, Citigroup told the newspaper (Reuters July 1). A number of banks have announced rate increases on credit cards recently, generating criticism from consumer groups ...
The idea that the 19 largest U.S banks would pay higher-than-average rates on certificates of deposit (CD) and money market accounts isn't true, according to research by Market Rates Insight. The national average rate for a one-year CD was 1.2% for the top 19 banks versus an average rate of 1.62% for 1,300 other banks between Jan. 1 and May 26. For money market accounts up to $100,000, the top banks' national average was 0.53%, compared with 0.78% for the other banks. The general thinking was that because the biggest banks received money from the Troubled Asset Relief Program and had demand for deposits, they could afford to pay higher rates (American Banker July 1) ...