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The Wall Street Journal Prime Rate (WSJ
Prime Rate) is defined by The Wall Street Journal (WSJ) as
"The base rate on corporate loans posted by at least 75% of
the nation's 30 largest banks." It is not the 'best' rate
offered by banks. It should not be confused with the Federal
Funds Rate set by the Federal Reserve, though these two
rates often move in tandem.
The print edition of the WSJ is generally the official
source of the prime rate. The Wall Street Journal prime rate
is considered a trailing economic indicator. Many (if not
most) lenders specify this as their source of this index and
set their prime rates according to the rates published in
the Wall Street Journal. Because most consumer interest
rates are based upon the Wall Street Journal Prime Rate,
when this rate changes, most consumers can expect to see the
interest rates of credit cards, auto loans and other
consumer debt change.
The prime rate does not change at regular intervals. It
changes only when the nation's "largest banks" decide on the
need to raise, or lower, their "base rate." The prime rate
may not change for years, but it has also changed several
times in a single year.
Source -- Wikipedia.org
www.wsjprimerate.us
is another great source for information about the Wall
Street Journal Prime Rate including a detailed explanation
and historical data.
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BancGROUPTM Mortgage
Corporation is an Equal Housing Lender and California, Colorado (MB100017881), Illinois, Indiana,
Wisconsin and Florida Residential Mortgage Licensee