For the first time in several months, prime lending rates have dropped to a low 16%. Some banks are reported to be offering their better customers money at 14%. This is a big decline from the low of 24% several months ago. Banks are reportedly paying 14-12% on certificates of deposit, but this rate is expected to drop in September, when lending rates are also expected to drop further. Banks are offering clients that do not qualify for prime rates 20-25% on loans. Some car financing agencies are offering rates at 23%, down from 36% last year.
