Prosper interest rates are on the rise — in case you where wondering this is a good thing for lenders! 

The release of the lender bidding guidance (general announcement, secondary analysis) seems to line up with a rise in near prime and sub prime interest rates.  Similarly, the graph that I am using to demonstrate my point is coming from Eric’s Credit Community who is today’s guest blogger on the Prosper Blog: Follow the Leader: Watching Lenders and Groups on ericscc.com.  Coincidence?

Eric’s CC Lender Rate History

Educating lenders to their risks seems to have had a dramatic effect.  Kudos Prosper.

I wonder if the borrower listing rate guidance is having a similar effect on starting interest rates?

Here is what I came up with for average listing starting rate since 09/01/2007 (7 Day moving average). This would be better if a 30 day moving average like the above graph from EricsCC, but we don’t have enough data yet…

Here is the sql:

select aday,creditgrade,avg(borrowermaximumrate) from listing inner join alldays on startdate>=(aday-6) and startdate<(aday+1) where aday'9/1/2007' group by aday,creditgrade order by aday,creditgrade 

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