The FOMC left the Fed Funds Rate at 5.250% yesterday, signaling controlled growth in the months ahead. Most notable was the press release’s inclusion of "tentative signs of stabilization" with respect to the housing market and the removal of references to high energy prices.
Because the FFR did not change, the FFR-derived Prime Rate also remains unchanged.
Prime Rate is 8.250%, the same level at which it has held for the past seven months. For holders of credit card and home equity line of credit debt, therefore, this is good news because rates for both of these credit instruments are based on Prime Rate.
Overall, mortgage rates retreated following the FOMC annoucement to their lowest levels in five days.