The prime rate over the last 2 years
Prime went from 8.00% in October 2024 to 7.00% now, changing six times: five cuts and one increase. Each step in the line is one change, and the rate stays flat between them.
Point at the line to read the rate on any day.
Source: Board of Governors of the Federal Reserve System, H.15 Selected Interest Rates, bank prime loan rate, via FRED. Daily data through October 27, 2026.
Every prime rate change since October 2024
Each change was 0.25 point, and each took effect within a day of a Federal Reserve rate decision.
| Took effect | Prime rate | Change | Federal Reserve decision |
|---|---|---|---|
| 7.00% | +0.25 | Raised Sep 16 | |
| 6.75% | −0.25 | Cut Dec 10 | |
| 7.00% | −0.25 | Cut Oct 29 | |
| 7.25% | −0.25 | Cut Sep 17 | |
| 7.50% | −0.25 | Cut Dec 18 | |
| 7.75% | −0.25 | Cut Nov 7 |
How prime sets a HELOC rate
Most HELOCs have a variable rate made of two parts: an index, usually the prime rate, and a margin the lender adds on top. The index moves with the market. The margin is set when you open the line and stays the same, and it depends mostly on your credit and how much of your home's value you borrow.
Prime rate 7.00% +Your margin, e.g. 1.00% =HELOC rate 8.00%
- Monthly interest at 8.00%Prime 7.00% plus a 1.00 point margin
- $333
- If prime rises 0.25 pointThe rate becomes 8.25%
- $344
- Change per month
- +$10
The 1.00 point margin is only an example. Your lender sets your margin, and your agreement says how often the rate adjusts, whether it has a cap, and whether an introductory rate applies first.
What moves the prime rate
Banks set their own prime rate, and in practice nearly all large banks keep it 3 percentage points above the top of the Federal Reserve's target range for the federal funds rate. So prime changes when the Federal Reserve raises or cuts that target, usually the next day, and holds steady between those decisions.
The Federal Reserve sets the target at eight scheduled meetings a year. Its next meeting is December 8 and 9, 2026, and this page picks up any change once the Federal Reserve publishes it.
Frequently asked questions
What is the prime rate today?
The prime rate is 7.00%, according to the Federal Reserve's latest daily figure, for October 27, 2026. It has been 7.00% since September 17, 2026. This page refreshes from Federal Reserve data every day.
How does the prime rate affect my HELOC?
If your HELOC rate is prime plus a margin, it rises and falls with prime. On a $50,000 balance, each 0.25 point move in prime changes an interest-only payment by about $10 a month. Your agreement says how often your rate can adjust and whether it has a cap.
How often does the prime rate change?
Prime follows the Federal Reserve, which sets its rate target at eight scheduled meetings a year, so prime usually changes only right after one of them. In the last 2 years it changed six times. The next meeting is December 8 and 9, 2026.
Is the prime rate the rate I would pay on a HELOC?
Usually you pay more than prime. A lender adds a margin based on your credit, how much of your home's value you borrow and other factors, and some offer a lower introductory rate for the first months. LenderMatch does not set or quote rates; lenders you are matched with make their own offers.
Keep reading
- What is a HELOC? How it works, and what happens after year 108 min read
- HELOC draw period ending: how much your payment jumps, and 5 options7 min read
- HELOC rules by stateLimits, waiting periods and home prices for each state
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