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 Oct. 29, 2008.
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Home equity products
Rates: 5.49 percent (line of credit); 7.95 percent (loan)
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Rates on home equity products were split this week.
The average home equity line of credit -- or HELOC -- fell 1 basis point, to 5.49 percent.
HELOC borrowing costs should continue to fall in coming weeks now that the Federal Reserve Open Market Committee cut the target federal funds rate by 50 basis points Oct. 29. 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.
Meanwhile, home equity loan rates rose 6 basis points, to 7.95 percent. Loan rates are not directly tied to Federal Reserve rate decisions, so it remains to be seen whether they will rise or fall in coming weeks.
-- Chris Kissell
Compare home equity loans in your area. |
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July 30 - Aug. 5
