Market watchers are awaiting the conclusion of a two day Federal reserve meeting this week. Experts say there is a good chance that the rate that banks charge each other for overnight loans may be reduced which in turn would lower the prime rate. The prime rate is currently at 7.75%.
Home Equity Lines of Credits, credit cards, and other consumer loans are tied to this benchmark. A 30 year fixed mortgage rate moves more in tandem with the 10 year bond rate. What does it all mean? Stay tuned. Currently mortgage rates remain near historic lows, however rates on lines of credit are not as favorable as some years ago.
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