Fed Prime Rate Dashboard
Real-time federal funds rate, prime rate, SOFR & treasury yields — updated daily from FRED & NY Fed data
Daily Fed Data
15+ Rate Series
Market Analysis
Fed Prime Rate & Federal Funds Rate Guide
The federal prime rate is the benchmark interest rate that commercial banks charge their most creditworthy customers. Set at 3 percentage points above the federal funds rate upper target, the prime rate directly influences the cost of credit cards, home equity lines of credit, adjustable-rate mortgages, and many business loans. This dashboard provides daily-updated data from the Federal Reserve Economic Data (FRED) system and the New York Federal Reserve Markets Group, giving you a comprehensive view of the rates that drive consumer and commercial lending across the United States.
Understanding the Federal Prime Rate & Key Reference Rates
Key Takeaways
- Prime rate: 6.75%, unchanged since December 11, 2025. Formula: Fed funds upper bound (3.75%) + 3.00%
- Federal funds rate: 3.50%–3.75% target range, held steady at the March 2026 FOMC meeting
- SOFR: 3.64% overnight rate with $3,063 billion daily volume, the benchmark that replaced LIBOR
- Treasury yields: 10-year at 4.33%, 30-year at 4.89%, 2-year at 3.84%
- Data sources: All rates on this page are pulled live from the FRED API and NY Fed Markets API
- Outlook: Markets price ~86% odds of a hold at April FOMC; first likely cut is June (~40% probability)
On This Page
How the Fed Sets the Prime Rate
The prime rate is not set by the Federal Reserve directly. Instead, it follows a mechanical formula: each time the Federal Open Market Committee adjusts the federal funds target range, every major U.S. bank adjusts its prime rate by the same amount, usually within one business day. Since 1994, the spread between the fed funds upper bound and the prime rate has been exactly 3.00 percentage points. The Wall Street Journal prime rate, which is the most widely quoted benchmark, is determined by surveying the 10 largest U.S. banks.
At the current fed funds target of 3.50%–3.75%, the prime rate sits at 6.75%. The effective federal funds rate—the volume-weighted average of actual overnight transactions between banks—is 3.64%, well within the target band. This rate is published daily by the New York Federal Reserve and is available via their free Markets Data API.
| Stage | Rate | How It Connects |
|---|---|---|
| Fed Funds Target | 3.5%–3.75% | FOMC sets this range 8 times per year |
| Effective FFR | 3.64% | Actual overnight bank-to-bank lending rate ($93B daily) |
| Discount Rate | 3.75% | Banks borrow directly from Fed at this emergency rate |
| Prime Rate | 6.75% | = Fed funds upper + 3.00%. Banks’ best-customer rate |
| SOFR | 3.64% | Replaced LIBOR. Benchmark for adjustable-rate loans ($3,063B daily) |
| Credit Cards | 18.75%–29.75% | Prime + 12%–23% margin based on credit score |
| HELOCs | 7.25%–8.75% | Prime + 0.5%–2.0% margin |
| 30-Yr Fixed Mortgage | 6.38% | Tied to 10-year Treasury (4.33%) + ~2% spread |
Pro Tip
Variable-rate products (credit cards, HELOCs, business lines) move in lockstep with the prime rate. Fixed-rate products (mortgages, auto loans) are driven by Treasury yields, which can move independently of Fed policy. Understanding which benchmark drives your loan helps you time refinancing decisions more effectively.
Prime Rate vs Federal Funds Rate
The chart below shows the prime rate and federal funds upper bound over the past two years. Notice how the prime rate tracks the fed funds rate with a constant 3.00% spread. Data is sourced directly from the FRED DPRIME and DFEDTARU series.
Prime Rate vs Fed Funds Upper Bound (2024–2026)
Source: FRED series DPRIME, DFEDTARU. Updated daily via API.
SOFR Trend & Overnight Markets
The Secured Overnight Financing Rate replaced LIBOR as the primary benchmark for adjustable-rate financial products in the United States. SOFR is calculated from overnight Treasury repurchase agreement transactions and is published each business day by the New York Federal Reserve. Unlike the old LIBOR, SOFR is based on actual market transactions rather than bank estimates, making it more transparent and resistant to manipulation.
The SOFR averages (30-day, 90-day, 180-day) are particularly important for adjustable-rate mortgages and student loans, which often reset based on the 30-day SOFR average. The current 30-day average of 3.6589% is what your ARM lender would use for the next rate adjustment. The SOFR Index at 1.23710367 represents the cumulative compounded value of $1 invested at SOFR since April 2, 2018.
SOFR Daily Rate (90-Day Trend)
Source: FRED series SOFR. Green shading shows rate corridor.
| Market | Rate | Volume | What It Measures |
|---|---|---|---|
| SOFR | 3.64% | $3,063B | Broad Treasury repo market (tri-party + bilateral + GCF) |
| TGCR | 3.63% | $1,272B | Tri-party general collateral repo only |
| BGCR | 3.63% | $1,303B | Tri-party + GCF repo (broader than TGCR) |
| OBFR | 3.64% | $189B | Fed funds + Eurodollar transactions combined |
| EFFR | 3.64% | $93B | Unsecured overnight fed funds only |
Treasury Yield Curve
The Treasury yield curve shows how interest rates vary across different maturities. When the curve is upward-sloping (longer maturities yield more), it generally signals expectations of economic growth. An inverted curve (short rates above long rates) has historically preceded recessions. The current curve shape, with the 2-year at 3.84% and the 10-year at 4.33%, shows a positive 2s/10s spread of 0.49 percentage points.
| Maturity | Yield | FRED Series |
|---|---|---|
| 2-Year | 3.84% | DGS2 |
| 5-Year | 3.96% | DGS5 |
| 10-Year | 4.33% | DGS10 |
| 30-Year | 4.89% | DGS30 |
| 2s/10s Spread | +0.49% | DGS10 minus DGS2 |
Pro Tip
If you are shopping for a mortgage, watch the 10-year Treasury yield more than the fed funds rate. A 30-year fixed mortgage is priced at approximately the 10-year yield plus a 1.7%–2.2% spread. When the 10-year drops below 4.00%, expect 30-year mortgage rates to dip below 6.00%.
Impact on Consumer Rates
Every consumer financial product traces back to one of the benchmark rates on this page. Variable-rate products are tied to the prime rate (which follows the fed funds rate), while fixed-rate products are tied to Treasury yields of matching maturity. The Consumer Financial Protection Bureau recommends understanding which benchmark drives your loan so you can anticipate rate changes.
| Product | Typical Rate | Benchmark | How It’s Set |
|---|---|---|---|
| Credit Cards | 18.75%–29.75% | Prime (6.75%) | Prime + 12%–23% fixed margin |
| HELOCs | 7.25%–8.75% | Prime (6.75%) | Prime + 0.5%–2.0% margin |
| SBA 7(a) Loans | 9.00%–11.50% | Prime (6.75%) | Prime + 2.25%–4.75% per SBA caps |
| 30-Year Fixed Mortgage | 6.38% | 10-Yr Treasury (4.33%) | 10-year yield + ~2% spread |
| High-Yield Savings | 4.00%–5.00% APY | Fed Funds (3.50%–3.75%) | Online banks pay above fed funds to attract deposits |
| 1-Year CD | 4.00%–4.30% APY | 1-Yr Treasury | Tracks short-term Treasury yields closely |
| Adjustable-Rate Mortgages | 6.00%–6.50% | SOFR 30-Day Avg (3.66%) | SOFR average + 2.25%–2.75% margin |
Prime Rate History (2000–2026)
The prime rate has ranged from a low of 3.25% (December 2008 through November 2015) to a high of 9.50% (January 2001) over the past quarter century. The FRED DPRIME series provides the complete daily history going back to 1955. The annual averages below are calculated by the St. Louis Fed.
| Year | Avg Prime Rate | Year | Avg Prime Rate |
|---|---|---|---|
| 2000 | 9.24% | 2001 | 6.94% |
| 2002 | 4.68% | 2003 | 4.12% |
| 2004 | 4.34% | 2005 | 6.19% |
| 2006 | 7.96% | 2007 | 8.05% |
| 2008 | 5.07% | 2009 | 3.25% |
| 2010 | 3.25% | 2011 | 3.25% |
| 2012 | 3.25% | 2013 | 3.25% |
| 2014 | 3.25% | 2015 | 3.26% |
| 2016 | 3.51% | 2017 | 4.10% |
| 2018 | 4.90% | 2019 | 5.29% |
| 2020 | 3.53% | 2021 | 3.25% |
| 2022 | 4.85% | 2023 | 8.20% |
| 2024 | 8.31% | 2025 | 7.37% |
*2026 shows current rate, not annual average.
Frequently Asked Questions
What is the Fed prime rate today?
The U.S. prime rate is 6.75% as of 2026-03-24, according to the FRED DPRIME series. This rate has been in effect since December 11, 2025, when the Federal Reserve cut the federal funds target by 25 basis points to 3.50%–3.75%. The prime rate equals the fed funds upper bound (3.75%) plus a fixed 3.00% spread.
How is the prime rate different from the federal funds rate?
The federal funds rate is the overnight rate at which banks lend reserves to each other. The FOMC sets a target range (currently 3.50%–3.75%) and the actual effective rate trades within it (currently 3.64%). The prime rate is always 3.00 percentage points above the fed funds upper bound. It serves as the benchmark for consumer lending products like credit cards, HELOCs, and business loans. Whenever the FOMC changes its target, the prime rate moves by the same amount within one business day.
What is SOFR and why does it matter for my loans?
SOFR (Secured Overnight Financing Rate) is currently 3.64% based on $3,063 billion in daily Treasury repo transactions. It replaced LIBOR as the benchmark for adjustable-rate mortgages, student loans, and many commercial loans. If you have an ARM, your rate likely resets based on the SOFR 30-day average (currently 3.6589%) plus your lender’s margin. You can track it daily via the free NY Fed Markets API.
Where does the data on this page come from?
All rates are sourced from two official U.S. government APIs updated daily. The FRED API (Federal Reserve Bank of St. Louis) provides the prime rate, fed funds rate, Treasury yields, mortgage rates, and economic indicators like CPI and unemployment. The NY Fed Markets Data API provides real-time reference rates (SOFR, EFFR, OBFR, TGCR, BGCR) including transaction volumes and percentile distributions. Both APIs are free and publicly accessible.
When will the prime rate change next?
The prime rate only changes when the FOMC adjusts the federal funds target range. The next FOMC meeting is April 28–29, 2026. The CME FedWatch tool currently prices ~86% odds of no change at that meeting. The first meeting where a cut is meaningfully priced in is June 17–18, 2026 (~40% probability). If the FOMC cuts by 25 basis points, the prime rate would drop from 6.75% to 6.50%.
Related Resources
- Current Prime Rate — detailed prime rate analysis with bank-by-bank rates
- FOMC Meeting Schedule & Predictions — countdown to next decision with probability analysis
- U.S. Interest Rates Dashboard — comprehensive multi-rate overview
- Current Mortgage Rates — daily updated 30-year, 15-year, ARM rates
- Best CD Rates — top certificate of deposit rates by term
- Best High-Yield Savings Accounts — top savings rates updated daily
- Prime Rate & Credit Cards — how prime rate changes affect your APR
- Prime Rate & Mortgages — HELOC and ARM rate connection to prime
References
- Federal Reserve Board. Selected Interest Rates (H.15 Release). Updated daily.
- Federal Reserve Bank of St. Louis. FRED: Bank Prime Loan Rate (DPRIME).
- Federal Reserve Bank of New York. Markets Data API — Reference Rates.
- Federal Reserve Bank of New York. Secured Overnight Financing Rate (SOFR).
- CME Group. CME FedWatch Tool.
- Wall Street Journal. WSJ Prime Rate.
- Consumer Financial Protection Bureau. Consumer Financial Protection Bureau.
- U.S. Department of the Treasury. Treasury Yield Curve Data.
- Freddie Mac. Primary Mortgage Market Survey (PMMS).
- Bureau of Labor Statistics. Consumer Price Index (CPI).
Disclaimer: The information on this page is sourced directly from official Federal Reserve and government APIs and is provided for educational purposes only. It does not constitute financial advice. Consult with a qualified financial advisor before making borrowing or investment decisions. Rates shown are updated daily but may not reflect intraday changes. PrimeRates.com is not affiliated with the Federal Reserve System.