So those of you in the business for a few years remember that "back in the day", when rates were high the Nightly News always told you what "Prime" was that day and if it had changed. Most of you should know what the "Prime Rate" is but for those of you who don't here is a definition from moneycafe.com:
The last reported rate is: 7.25 %
This has been effective since December 11, 2007
What is the Prime Rate? The Prime Interest Rate is the interest rate charged by banks to their most creditworthy customers (usually the most prominent and stable business customers). The rate is almost always the same amongst major banks. Adjustments to the prime lending rate are made by banks at the same time; although, the prime rate does not adjust on any regular basis. The rates reported below are based upon the prime rates on the first day of each respective month.
Historical Graph
Historical Chart
| Prime Rate |
| Month |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
| Jan 1 |
8.25% |
8.50% |
7.75% |
8.50% |
9.50% |
4.75% |
4.25% |
4.00% |
5.25% |
7.25% |
8.25% |
| Feb 1 |
8.25% |
8.50% |
7.75% |
8.50% |
8.50% |
4.75% |
4.25% |
4.00% |
5.25% |
7.50% |
8.25% |
| Mar 1 |
8.25% |
8.50% |
7.75% |
8.75% |
8.50% |
4.75% |
4.25% |
4.00% |
5.50% |
7.50% |
8.25% |
| Apr 1 |
8.50% |
8.50% |
7.75% |
9.00% |
8.00% |
4.75% |
4.25% |
4.00% |
5.75% |
7.75% |
8.25% |
| May 1 |
8.50% |
8.50% |
7.75% |
9.00% |
7.50% |
4.75% |
4.25% |
4.00% |
5.75% |
7.75% |
8.25% |
| Jun 1 |
8.50% |
8.50% |
7.75% |
9.50% |
7.00% |
4.75% |
4.25% |
4.00% |
6.00% |
8.00% |
8.25% |
| Jul 1 |
8.50% |
8.50% |
8.00% |
9.50% |
6.75% |
4.75% |
4.00% |
4.25% |
6.25% |
8.25% |
8.25% |
| Aug 1 |
8.50% |
8.50% |
8.00% |
9.50% |
6.75% |
4.75% |
4.00% |
4.25% |
6.25% |
8.25% |
8.25% |
| Sep 1 |
8.50% |
8.50% |
8.25% |
9.50% |
6.50% |
4.75% |
4.00% |
4.50% |
6.50% |
8.25% |
8.25% |
| Oct 1 |
8.50% |
8.25% |
8.25% |
9.50% |
6.00% |
4.75% |
4.00% |
4.75% |
6.75% |
8.25% |
7.75% |
| Nov 1 |
8.50% |
8.00% |
8.25% |
9.50% |
5.50% |
4.75% |
4.00% |
4.75% |
7.00% |
8.25% |
7.50% |
| Dec 1 |
8.50% |
7.75% |
8.50% |
9.50% |
5.00% |
4.25% |
4.00% |
5.00% |
7.00% |
8.25% |
7.50% |
| Copyright 2007 MoneyCafe.com |
Source: Federal Reserve Board
Where am I going with all this you ask? Well, IMHO I think that if the media started to tell the world that the Prime Rate is 7.25% today----but you can get a mortgage at 6% that it might spur the market.
Just my HO. I remember "back in the day" we were thrilled if we could borrow a point or two OVER prime!