Money Market Interest Rates and Mortgage Rates, 2003–2006


Type

2003

2004

2005

2006

Federal funds, effective rate 1.13% 1.35% 3.22% 4.97%
Prime rate charged by banks 4.12 4.34 6.19 7.96
Discount rate1 2.12 2.34 4.19 5.96
Eurodollar deposits, 3-month 1.14 1.55 3.51 5.19
Large negotiable CDs:        
 3-month, secondary market 1.15 1.57 3.51 5.16
 6-month, secondary market 1.17 1.74 3.73 5.24
Taxable money market funds2 0.64 0.82 2.66 4.51
Tax-exempt money market funds2 0.53 0.66 1.87 2.90
Certificates of deposits (CDs):3        
 6-month 1.02 1.14 2.37 3.29
 1-year 1.20 1.45 2.77 3.64
 2½-year 1.77 2.21 3.18 3.75
 5-year 2.93 3.34 3.75 4.02
U.S. Government securities:        
 Secondary market:4        
  3-month Treasury bill 1.01 1.37 3.15 4.73
  6-month Treasury bill 1.05 1.58 3.39 4.81
 Auction average:5        
  3-month Treasury bill 1.02 1.38 3.16 4.73
Home mortgages:        
 New home mortgage yields6 5.80 5.77 5.94 6.60
 Conventional, 15-yr. fixed3 5.25 5.23 5.50 6.13
 Conventional, 30-yr. fixed3 5.89 5.86 5.93 6.47

1. Rate for the Federal Reserve Bank of New York.

2. 12-month return for period ending Dec. 31. Source: iMoneyNet, Inc., Westborough, Mass., Money Market Insight, monthly. Web: www.imoneynet.com .

3. Annual averages. Source: Bankrate, Inc., North Palm Beach, Fla., Bank Rate Monitor, weekly.

4. Averages based on daily closing bid yields in secondary market, bank discount basis.5. Averages computed on an issue-date basis; bank discount basis. Source: U.S. Council of Economic Advisors, Economic Indicators, monthly.

6. Effective rate (in the primary market) on conventional mortgages, reflecting fees and charges as well as contract rate and assumed, on the average, repayment at end of ten years. Source: U.S. Federal Housing Finance Board, Rates & Terms on Conventional Home Mortgages, Annual Summary.

Source: Except as noted, Board of Governors of the Federal Reserve System, Federal Reserve Bulletin, monthly. From Statistical Abstract of the United States: 2008.


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Average Prices of Selected Fuels and Electricity, 1980–2004 U.S. Economy and the Federal Budget Money Market Interest Rates and Mortgage Rates, 1980–2002