Home equity line customers may soon be enjoying a decreased interest rate, if market rumors come to fruition.
The Associated Press reports:
“Many believe the Fed will ratchet down a key lending rate to banks — now at 2 percent. In turn, the prime lending rate — now at 5 percent — for certain credit cards, home equity lines of credit and many other consumer and business loans — would drop by a corresponding amount.
Some believe rates could be slashed soon by as much as a full percentage point to 1 percent in hopes of encouraging people and businesses to spend more, thereby restoring confidence to the system.”
Almost all American home equity lines are pegged to the prime rate. A 4% rate for the most credit-worthy customers would definitely be something to talk about. The only problem – who’s left to qualify for these low rates? And, what banks are willing to offer such loans while cutting the lines on thousands of other customers?
See Also:
Will Federal Rate Cuts Affect Your HELOC APR?
