What is the highest prime interest rate in US history?
The bank prime loan rate reached as high as 20% in 1981, when the federal reserve was led by Paul Volcker, and the interest rate environment was extremely inflated. Another notable time was 2008 when prime rate went as low as 3.25% during the Great Recession.
What was the highest prime rate? The highest prime rate was 21.5%, reached on December 19, 1980.
The benchmark interest rate in the United States was last recorded at 5 percent. Interest Rate in the United States averaged 5.42 percent from 1971 until 2024, reaching an all time high of 20.00 percent in March of 1980 and a record low of 0.25 percent in December of 2008.
The Fed funds rate, which is the rate banks charge each other for overnight loans, hit 20 percent in 1980, and 21 percent in June 1981. The cause was an inflationary spiral brought on by rising oil prices, government overspending and rising wages.
Under the criminal usury statute, the maximum interest that can be charged is 25%.
prime rate is 8.0% (rate effective as of September 19, 2024).
| rank | prime | who |
|---|---|---|
| 1 | 2996863034895·21290000-1 | L2035 |
| 2 | 3756801695685·2666669-1 | L1921 |
| 3 | 66982155216384-6698215528192-1 | A18 |
| 4 | 22271030616384-2227103068192-1 | A13 |
There's no federal regulation on the maximum interest rate that your issuer can charge you, though each state has its own approach to limiting interest rates.
Lawrence Yun, chief economist at the National Association of Realtors, even told CNBC last year that he doesn't think mortgage rates will reach the 3% range again in his lifetime.
» MORE: What happens when the Fed cuts rates? The current Fed rate is 4.75% to 5.00%.
What stopped inflation in the 80s?
Over time, greater control of reserve and money growth, while less than perfect, produced a desired slowing in inflation. This tighter reserve management was augmented by the introduction of credit controls in early 1980 and with the Monetary Control Act.
In February 1980, the average 30-year mortgage rate was 12.85%. By October 1981, the average rate had risen to a whopping 18.63%. Mortgage rates gradually cooled as the decade wore on. By March 1985, the average 30-year mortgage rate was roughly 13%, and at the end of the decade, rates dipped below the 10% mark.
Interest rates reached their highest point in modern history in October 1981 when they peaked at 18.63%, according to the Freddie Mac data. Fixed mortgage rates declined from there, but they finished the decade at around 10%.
The fed funds rate began the decade at a target level of 14 percent in January 1980. By the time officials concluded a conference call on Dec. 5, 1980, they hiked the target range by 2 percentage points to 19-20 percent, its highest ever. Consumer borrowing costs soared as a result.
What's the Highest Mortgage Rate in History? From 1971 to present, the highest average mortgage rate ever recorded was 18.63% in October 1981. Mortgage rates held steady above 18% in the two-month span between Sept. 10 and Nov.
The Basic Rate: The California Constitution allows parties to contract for interest on a loan primarily for personal, family or household purposes at a rate not exceeding 10% per year.
| This Week | Year Ago | |
|---|---|---|
| Federal Discount Rate | 5 | 5.5 |
| Fed Funds Rate (Current target rate 4.75-5.00) | 5 | 5.5 |
| WSJ Prime Rate | 8 | 8.5 |
Projected Interest Rates In The Next Five Years
ING's interest rate predictions indicate 2024 rates starting at 4%, with subsequent cuts to 3.75% in the second quarter. Then, 3.5% in the third, and 3.25% in the final quarter of 2024. In 2025, ING predicts a further decline to 3%.
Canada's prime rate as of today is currently at 6.45%, influenced by the Bank of Canada's policy interest rate, also known as the target for the overnight rate.
“The best number is 73,” Cooper explained in the episode. “Why? 73 is the 21st prime number. Its mirror, 37, is the 12th, and its mirror, 21, is the product of multiplying seven and three ... and in binary, 73 is a palindrome, 1001001, which backwards is 1001001.”
Why is 1 no longer prime?
6 = 2 x 3 x 1 x 1 x 1... So this is one of the reasons why we wouldn't want to consider 1 to be a prime number because otherwise, we'd have to state the theorem as any number has a unique prime factorisation of primes greater than 1. So 1 doesn't quite act like a prime number in the way that the other numbers do.
Despite popular belief, the answer is not Optimus or Megatronus, but the Warrior of Light/ Leader of the Prime himself, Prima.
The California Constitution prohibits loans that are made primarily for personal, family or household purposes from having interest rates above 10% per year. This is California's general usury law.
| Institution Name | APY | Compounding Method |
|---|---|---|
| MyBankingDirect.com | 5.35% | Manual |
| UFB Direct | 5.35% | Daily |
| Western Alliance Bank | 5.31% | Monthly |
| LendingClub Bank | 5.30% | Monthly |
Avoid loans with APRs higher than 10% (if possible)
“That is, effectively, borrowing money at a lower rate than you're able to make on that money.”
