The prime rate is correlated with the federal funds rate and tends to move along with it. 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.
Realtor.com’s noteworthy housing market predictions for 2023: Fixed 30-year mortgage rates will average 7.4%, modestly retreating to 7.1% by year-end.