Here's a look at the state of interest rates on five common consumer banking products and the latest rates from Bankrate.com's weekly national survey of large banks and thrifts conducted Nov. 26, 2008.
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Home equity products
Rates: 5.25 percent (line of credit); 8.19 percent (loan)
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Rates on home equity products shot up significantly this week.
The average home equity line of credit jumped 15 basis points, to 5.25 percent. A basis point is one-hundredth of a percentage point.
Most home equity lines of credit are indexed to the prime rate, a common benchmark for consumer and business loans set by banks. The prime rate moves in lock step with the federal funds rate.
A series of Federal Reserve cuts in the federal funds rate have sent HELOC rates steadily lower, despite this week's increase. HELOC borrowing costs will fall further if the Fed cuts rates again as expected at the next meeting of the open market committee, scheduled for Dec. 15 and Dec. 16.
Meanwhile, home equity loan rates increased by 10 basis points, to 8.19 percent. Loan rates are now at their highest levels since May 2004.
-- Chris Kissell
Compare home equity loans in your area. |
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July 30 - Aug. 5
