After today’s 1.00% emergency rate decrease in the target range for the Fed Funds Rate, banks adjusted their Prime Rates with a corresponding decrease from 4.25% to 3.25%. These changes are effective for many banks tomorrow, March 16, 2020.

Update March 16, 2020: Rate decrease confirmed.

Note: Due to the emergency rate cut being on a Sunday, we were not able to complete our usual bank survey for full confirmation. We are making the change to our reported rate based upon a limited survey of banks and expect full confirmation on Monday.

In addition to interest rate decreases for commercial loans and credit cards, expect rate decreases in many consumer loans which are based upon the Prime Rate – for instance home equity loans, car loans, and personal loans. Mortgage loans track bond rates and don’t always see a direct correlation to Fed Funds and Prime Rate changes.