Historical Mortgage Trends
Wall Street Journal Prime Rate
The Prime Rate is the benchmark index used for determining interest rates for home equity lines of credit, credit cards, auto loans, and personal loans. Historically it has correlated quite closely with the actions of the Federal Funds Rate. That is, if the Fed increases its discount rate by ¼ %, banks will usually follow the Fed’s lead by increasing their prime lending rate by the same amount.
Over the last decade or so, the Prime Rate index has become more closely watched by the general masses. This is the result of an enormous number of property owners securing Home Equity Lines Of Credit (HELOC) and having the majority of these HELOCs use the Prime Rate as their base interest rate. The WSJ Prime Rate has remained at 3.25% since January 2009.
Below you will find the historical Prime Rates.
High: Dec 1980 21.5%
Low: Jan 2009 to Present 3.25%
WSJ PRIME RATE ANNUAL AVERAGE GRAPH (1980 - Present)
WSJ PRIME RATE MONTHLY DATA (1980 - Present)