It’s that time again…adult fun with graphs!
I decided to create a graph this morning based on data from the Federal Reserve, outlining the movement of the Prime Rate over the last then years.
The data set begins in September 1997 and runs all the way until the present, just hours before the Fed is expected to the lower rates for the first time in 17 quarters.
As you can see from the graph, the last ten years have been more than volatile, and may clue us in to why things are so “trying” at the moment.
The Prime Rate peaked in the summer of 2000, sitting firmly at 9.50% until February 2001 when rates began to nosedive.
Rates dropped from 9.50% to 5.00% during 2001 alone, and continued to fall until bottoming out at 4% in July of 2003, where they remained unchanged until June of 2004.
Enter refinance craze.
But that was the end of the party, as since then rates did nothing but march up to their current level of 8.25%.
In fact, since June of 2004, rates have either risen or remain unchanged, so a rate cut today will be a big moment.
The Prime Rate now sits at 8.25%, where it has remained since last summer, though many feel in just a few hours that rate will be 8%.