When 23 out of 30 largest US banks change their prime rate, the WSJ prints a composite prime rate change. Uses. The prime rate is used often as an index in calculating rate changes to adjustable rate mortgages (ARM) and other variable rate short term loans. . United States Prime Rate: The Current U.S. (Fed) Prime Rate is: % December 19, The FOMC has voted to raise the target range for the fed funds rate to % - %.
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The prime rate is used often as an index in calculating rate changes to adjustable rate mortgages ARM and other variable rate short term loans.
Please help improve this article by adding citations to reliable sources. Many credit cards with variable interest rates have their rate specified as the prime rate index plus a fixed value commonly called the spread.