Crystal Ball - Prime Rate?

Financing, Hard Money Lenders, Private Money
1

I was wondering if anyone has any predictions about what the prime rate is likely to do over the next 2-3 years?
I expect it to drop over the next several months (.5%-1.5%???) - but was wondering if
A. others also think it’ll drop by at least a point in the short term
B. if you think it will relatively quickly rebound to current levels in ~12-18 months?
C. or stay lower than current levels for any extended period of time.

I ask b/c I have a decent amount of money borrowed on equity lines (tied to prime), love the flexibility of lines, and don’t really want to convert the lines into fixed rate loans - even at the current rates.

Any thoughts?

2

Let me get out my Tarot cards.

I think that the Fed will try to prop up the economy by dropping rates at least until after the presidential elections.

But at some point, they are going to have to address the inflation issue.