Friday, February 15, 2008

Where Is The Prime Rate Today?

The prime rate is currently 6%. This is the rate at which banks lend money to their best customers. It is a benchmark used for setting various consumer loans, like credit cards, auto loans and home equity lines of credit. It is not a rate related to the rate of a first mortgage. The prime rate has dropped recently and a possible trend is that it will continue to drop. A key savings rate has also dropped. In other words money market acounts at banks or credit union and certificate of deposit rates have also decreased. Finding money market rates over 4.0% is nearly impossible now. CD rates over 3.5% are rare unless you want to tie up your money for 5 years. Real estate remains a great investment if you buy right and hold for the long term.

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