US Prime Rate Forecast Quarterly Trends: Oregon Economic Forecast (2024)

FAQs

What is the projected prime rate for 2024? ›

US Prime Rate Forecast is at 5.75%, compared to 5.75% last quarter and 5.75% last year.

According to the latest economic forecast, Oregon's economy is steady. But at the same time, state economists say that job growth over the past few years has been at some of the state's lowest levels in recent history. The forecast also found that there is a 50% chance for Oregonians to see another kicker in 2026.

In its June Mortgage Finance Forecast, the Mortgage Bankers Association predicts that mortgage rates will fall from 7% in the second quarter of 2024 to 6.6% by the fourth quarter. The industry group expects rates will fall to 6% at the end of 2025 and will average 5.8% in 2026.

The median estimate for the fed-funds rate target range at the end of 2025 moved to 3.75% to 4%, from 3.5% to 3.75% in December.

Oregon's budget includes general fund revenue derived mostly from personal and corporate income taxes; other sources are property, excise, inheritance, and insurance taxes, as well as revenue from liquor sales.

Yes, Oregon is one of the most expensive states to live in, with a cost of living significantly higher than the national average.

Retiring in Oregon brings tax benefits, diverse landscapes, and engaging activities for retirees. With a vibrant food scene, beautiful cities, and abundant outdoor activities, Oregon offers a fulfilling retirement lifestyle.

What was the highest prime rate? The highest prime rate was 21.5%, reached on December 19, 1980.

What is the difference between fed rate and prime rate? ›

The target federal funds rate, which is set by the Fed, serves as the basis for the prime rate. The federal funds rate is the interest rate commercial banks charge each other for overnight lending. Generally, the prime rate is about 3 percent higher than the federal funds rate.

US Bank Prime Loan Rate is at 8.50%, compared to 8.50% the previous market day and 8.25% last year.

The Federal Reserve has decided to hold interest rates steady after its meeting on June 11 and 12, 2024. The federal funds target rate has remained at 5.25% to 5.5% since July 2023.

Also, mortgage rates are still much higher than we've been used to in recent years. On 30 May 2024, the average 2 year fixed mortgage rate is 5.80%. While this is a significant drop from its July 2023 peak of 6.86%, it's still much higher than December 2021 when was 2.34%.

In summary, it is unlikely that mortgage rates in the US will ever reach 3% again, at least not in the foreseeable future.

Projections suggest that we may see no rate increases in 2024, and that the Fed might start dropping its rate later this year, according to the CME FedWatch Tool on June 11. If the Fed rate drops, CD rates will likely follow suit, though it's up to each bank and credit union if and when that occurs.