What is the Prime Rate?
The prime rate is defined by The Wall Street Journal (WSJ) as "The base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks." It is not the 'best' rate offered by banks.
HSH uses the print edition of the WSJ as the official source of the prime rate. Many (if not most) lenders specify this as their source of this index.
Any bank can declare its own prime rate. Some smaller banks will use a larger bank's prime as a reference for pricing loans, but most use the Wall Street Journal version.
When does the prime rate change?
The prime rate does not change at regular intervals. It changes only when the nation's "largest banks" decide on the need to raise, or lower, their "base rate." The prime rate may not change for years, but it has also changed several times in a single year.
Changes in the prime rate are highly correlated with changes in the federal funds rate. The prime rate typically changes a day or so after a change in the federal funds rate.
What is the current prime rate?
The current prime rate is 7.75%. It last changed on November 8, 2024.
Data source: Wall Street Journal (print edition)
Current and Historical Data
| Date of Change | Prime Rate | 04-Mar-20 | 4.25% |
|---|---|
| 16-Mar-20 | 3.25% |
| 17-Mar-22 | 3.50% |
| 05-May-22 | 4.00% |
| 16-Jun-22 | 4.75% |
| 28-Jul-22 | 5.50% |
| 22-Sep-22 | 6.25% |
| 03-Nov-22 | 7.00% |
| 15-Dec-22 | 7.50% |
| 02-Feb-23 | 7.75% |
| 23-Mar-23 | 8.00% |
| 04-May-23 | 8.25% |
| 27-Jul-23 | 8.50% |
| 19-Sep-24 | 8.00% |
| 08-Nov-24 | 7.75% |
What was the highest prime rate?
The highest prime rate was 21.5%, reached on December 19, 1980.
What was the lowest prime rate?
The lowest prime rate since 1975 is 3.25%. This occurred on two occasions: December 16, 2008 and March 16, 2020.
Go to the full list of ARM Index Histories.
HSH Associates makes every reasonable effort to supply complete and accurate information, but assumes no liability for errors.