Tag Archive for: prime rate

Why 1st/2nd Combos Are Back; Inflation Cools/Rates Plummet; Government Shutdowns; Permanent Daylight Savings Time? (Maybe Not)

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The Fed’s preferred inflation gauge, the Personal Consumption Index (PCE), came in cooler than expected today. This shocked the markets, given all the fearmongering about “resurging inflation,” and rates have been falling all morning as a result.Read More

Treasury Yields Down; Mortgage Rates Up; Why?

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“Interest rates” went down again today, but “mortgage rates” went up. I have blogged about this before but am hitting it again because it is so interesting and because it […]Read More

Are Home Equity Lines (HELOCs) Still A Thing?

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The Prime Rate today is 6.25% – a full 3% higher than where it was last year at this time. Prime Rate is the rate that commercial banks charge their […]Read More

2nd Mortgage vs. HELOC (Home Equity Line); Which Is Better?

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Yesterday’s blog, 5 Reasons to Get a HELOC, was inspired by a question from my nephew – as he is a perfect candidate for a HELOC. He is in his […]Read More

There Is No “One Rate” or “A Rate”

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I have been hearing news reporters and commentators say: “…the Fed raised ‘the rate,’” over and over, as if there is a single interest that the Fed has the power […]Read More

Mortgage Rates Do Not Equal 10-Year Treasury Rates

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The 10-Year Treasury Yield dropped almost 4/10% recently – so why didn’t mortgage rates drop that much? The 10-Year Treasury yield (interest rate) is a reflection of what it costs […]Read More

DANGER! Home Equity Lines & Inflation

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A borrower reached out to me for a Home Equity Line of Credit (HELOC) recently, and I referred her to a local bank that we work with that offers the […]Read More

What Are “Interest Rates?” Do They All Move In Unison?

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The 10 Year Treasury Yield, the Prime Rate, the Fed Funds Rate, MBS Rates, and mortgage rates usually move in unison, but sometimes they do not. For example, there have been instances where reductions in the Fed Funds rate actually resulted in higher mortgage rates because the market perceived the reduction in the Fed Funds rate as stimulative or as a boon to the economy – which often pushes rates up.Read More

Surprising Reasons Why People Are Refinancing

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The Fed raised short-term rates again yesterday but rates still remain much lower than expected. Part of the reason is that investors think the rate increases will hurt the economy […]Read More

Prime Rate Up; HELOCs Up; PMI Down

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Prime Rate was 3.5% last year at this time. Currently the Prime Rate is 4.25%. It has been climbing steadily with every increase in the Fed Funds Rate. Prime Rate […]Read More