Zeev's Turnips Patch-No Politics (ZEEV)

[Larry Brubaker]

Right now at 4.25, the prime rate looks quite tempting. I was recently looking at the fluctuations in the prime rate because I was considering a home equity line of credit with a variable interest rate at prime. What struck me is the volatility in the prime rate. As recently as Dec, 2000, it was at 9.5%.

http://research.stlouisfed.org/fred/data/irates/mprime

Far more volatile than the 30-year bond, which was at 5.5% in Dec, 2000.

http://research.stlouisfed.org/fred/data/irates/gs30

I'd hate to get stuck with a big balance when interest rates start heading back up. And at the rate G.W. Bush is borrowing money, it seems like a good bet rates will start back up.