The rate has been unchanged since September 2010 which was
the longest unchanged streak in history. This means the prime rate is now
2.75%.
Economists have been predicting that the prime rate will
remain unchanged until sometime in 2016 and some even longer than that. Now with this rate cut, things look very good
for anyone with a variable rate mortgage or line of credit.
This decision doesn't affect fixed mortgage rates. While
variable rate
mortgages and lines of credit are affected by prime rate,
fixed mortgage rates are determined by bond yields which have been declining
rapidly recently and have reached their lowest levels in history.
It may also be a great time to consolidate any higher
interest debt into your mortgage to take advantage of such low rates and
lowering your overall monthly payment and amount of interest you are paying
significantly.
