what is the prime rate? how does that affect my mortgage loan?

The Prime rate is among the most widely used benchmark in setting home equity lines of credit and credit card rates. It is in turn based on the federal funds rate, which is set by the Federal Reserve. The prime rate is not a good gauge for monitoring mortgage interest rates.. What drives interest rates are Mortgage Backed Securities (MBS). It's the intraday trading of these MBS's that drive rates up or down.. Unless you pay for a service (as mortgage companies do), you cannot monitor MBS trading live or delayed.. End of day trading is available at many different websites.. Typically, when wall street has a good day, then it's bad for MBS trading and rates will go up.. Conversely, when wall street has a bad day, then investors will flock to the bond side of trading and can be good for interest rates and drive them down.. Every person in tune to today's economy and in the mortgage industry, will all say "Don't Delay.. Buy Today"... it's no secret that property values are on the rise as are interest rates.. If you're considering purchasing a home, you need to do it now, because as rates increase along with property values, your purchasing power will diminish.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

The prime rate is used for business loans. Watch the 10-year Treasury note rate to follow the mortgage rate changes. Apply now, as rates may increase again soon.

The prime rate is used as a benchmark for setting rates on different types of loans but mortgage rates are not influenced by the prime rate unless you're talking about a Home Equity Line of Credit (i.e. HELOCs). HELOCs are directly tied to the prime rate and if you currently have or will be getting a HELOC then the prime rate will most likely by the main influence on whether or not your HELOC rate moves up or down.

Other answers are good-- need to focus on 10 year Treasury bills, rather than Prime rate for understanding mortgages. If you really want to be on top of the mortgage rate program, you should get in touch with a local, licensed mortgage professionalwho can keep you advised as to what is happening. Please note that the recent run up was caused, in part, by Treasury SecretaryBernanke's comment that they would be reducing the Quantitative easing program when some numbers changed, and those numbersare likely to be changing by the end of the year - so that may lead to further run up of the interest rates.