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Rates: 7.54 percent (48-month, new car); 8.58 percent
(36-month, used car)
 New-car
loans for three-year, four-year, and five-year terms
were all unchanged since last week. Used-car loans edged
slightly higher, from 8.55 percent to 8.58 percent.
The last time used-car loan rates increased was the
week of Feb. 5, when rates inched up from 8.89 percent
to 8.9 percent. Since that time, rates dropped nearly
every week before hitting 8.55 percent last week. Rates
may resume the downward slide in coming weeks, especially
if the Federal Reserve cuts interest rates again.
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Certificate
of deposit yields remain in the cellar and with economic
weakness gaining renewed focus, more downward pressure
on yields can be expected. In the waning days of war,
the disappointing economic data that has prevailed in
recent weeks will be fully digested, after being initially
ignored. Lousy economic data and lackluster loan demand
have kept yields on a downward trend, and speculation
of further Federal Reserve action will fuel the downward
trend.
