Browse Our Site:
Search Mortgage Library:
Types Of Mortgage Loans Mortgage Lender Directory  +  Mortgage Calculators  +  Mortgage (ARM) Indexes Mortgage Market Survey
+ Find The Best Mortgage + Ask A Mortgage Related Question  +  Articles And Publications  +  Mortgage Glossary + Search Mortgage Rates +
Credit Grade Guide Historical Mortgage Index Data  +  Historical Mortgage Rate Data  +  Home Interest Rate Trends

Mortgage (ARM) Indexes

CMT + CMT FAQ + T-Bill + T-Bill FAQ + MTA + MTA FAQ + CODI + COFI + COFI FAQ + COSI + W-COSI + LIBOR + LIBOR FAQ + CD + Prime Rate + RNY + FHFB Contract Rate
Current Values + Release Dates + Comparison Chart + Which Index Is Better? + Mortgage Rate Trend Survey
Historical Data + COFI History + COSI History + CODI History + MTA History + Prime Rate History + Daily WSJ LIBOR Histories + Mortgage-X LIBOR History
Monthly CMT History + Daily CMT Histories + FHFB Contract Rate History + Federal COFI History + National Monthly Median COFI History + FNMA LIBOR History
1-, 3-, 9-Yr Avg + 2-, 6-, 12-Yr Avg + 5-, 10-, 15-Year Averages + Prime Rate Forecast + MTA Rate Forecast + COFI Forecast + COSI Forecast + CODI Forecast
Variability Table + Changes of Direction + W-COSI or CODI? + 6-Month Trends + Lagging Indexes + Find the Best Mortgage!

London Inter Bank Offering Rates (LIBOR)

London Inter Bank Offering Rate (LIBOR) is an average of the interest rate on dollar-denominated deposits, also known as Eurodollars, traded between banks in London. The Eurodollar market is a major component of the International financial market. London is the center of the Euromarket in terms of volume.

The LIBOR is an international index which follows the world economic condition. It allows international investors to match their cost of lending to their cost of funds. The LIBOR compares most closely to the 1-Year CMT index and is more open to quick and wide fluctuations than the COFI rate, as shown on our graph.

There are several different LIBOR rates widely used as ARM indexes: 1-, 3-, 6-Month, and 1-Year LIBOR. The 6-Month LIBOR is the most common.

6-Month LIBOR vs. 1-Yr CMT, 11th District COFI
6-Month LIBOR vs. 1-Yr CMT, 11th District COFI, 1992-2014 { Obtaining Permission to Reproduce }

LIBOR-indexed ARMs offer borrowers aggressive initial rates (lower than many other ARMs) and has proved to be competitive with such popular ARM indexes as the 11th District Cost of Funds, the 6-Month Treasury Bill, and the 6-Month Certificate of Deposit. With the LIBOR ARMs borrowers are generally protected from wide fluctuations in interest rates by periodic and lifetime interest rate caps. LIBOR ARMs usually do not have negative amortization.

Historical Data: Mortgage-X compiles historical values for the indexes which are widely used on adjustable rate mortgages (ARMs). Click here for a history of the LIBOR index.

LIBOR: Frequently Asked Questions

Mortgage Professionals Offering LIBOR-indexed Loans: If you are looking for a LIBOR-indexed ARM and need more information or advice, we invite you to take advantage of our database of the most competitive lenders available. Just complete a short loan request form and the best lenders in your local area will contact you with their rates and fees.

Note: Besides the WSJ LIBOR as published in the Wall Street Journal* lenders may use the monthly FNMA LIBOR or a replacement index, since the original Fannie Mae LIBOR index has been discontinued* and has only historical values. So if your ARM is based on a LIBOR, the loan must specify which one is being used.

* The LIBOR (WSJ LIBOR) quoted in the Wall Street Journal (print edition) is the LIBOR posted by the British Bankers' Association (BBA). Each day the Wall Street Journal publishes yesterday's BBA LIBOR rate as part of the Money Rates table in the Money and Investing Section.

Back to Mortgage Indexes

Interest Rate Forecasting: Economic Indicators  |  Mortgage Market Survey  |   Interest Rate Trends

Treasury Market and Mortgage Rates  |  Historical Mortgage Rate Data   |  Mortgage Indexes

Mortgage professionals are welcome to participate!
Home  +  About Us  +  Contact Us  +  Disclaimer  +  Privacy Policy
Mortgage-X is an independent information service and is not affiliated with any lending institution.
Copyright 1998-2014
All Rights Reserved