What are the chances of the prime interest rates coming back down within the next two years?

Answer 1

Right now, the Fed Funds rate is at 5.25%, and the Prime rate is almost always exactly 3% higher and moves in lock step with the Fed Funds rate. Right now, I see the Fed Funds rate staying right where it is for the next few months, and if it moves at all, it will go slightly higher (perhaps another .25 percent). The tone of Ben Bernanke (Chairman of the Federal Reserve board)'s last few speeches suggest that a significant rate drop is very unlikely.