The 1 YEAR LIBOR
Index
Many types of adjustable rate mortgage loans are indexed to the London Interbank Offering Rate. Below is a chart of LIBOR rates for the last 10 years. LIBOR loans normally have lower margin rates than CMT (constant maturity of U.S. treasuries) with 2.25% being typical for a residential first mortgage. Both LIBOR and CMT are faster moving the 12 MTA index. LIBOR seems to move faster than CMT but retains its appeal with a lower margin than the CMT indexed loans. 12 MTA indexed loans may have different margin offerings depending on market conditions and competitiveness of the lender while LIBOR and CMT lenders tend to keep their margins constant.
If you are considering a mortgage loan that adjusts to the
LIBOR index, the most important factor (other than the rate and points) is the
margin. Most US residential mortgages that use the LIBOR index offer a
2.25% margin. The margin is the amount that is added to the index to
adjust the rate. All future interest rate adjustments will be determined
by adding the margin to the index.
Historical rates
Current mortgage rates (no closing costs)
| 1- Year LIBOR Index The London Interbank Offering Rate (LIBOR) is the average of interbank offered rates for the one year U.S. dollar denominated deposits in the London market. Although the index is published monthly, this chart shows historical monthly averages. |
| |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006
|
2007 |
2008 |
| January |
7.75% |
5.45% |
5.79% |
6.08% |
5.21% |
6.51% |
6.00% |
2.45% |
1.45% |
1.46% |
3.10% |
4.81% |
5.33% |
4.05% |
| February |
7.25% |
5.20% |
5.95% |
5.77% |
5.11% |
6.66% |
5.28% |
2.42% |
1.48% |
1.46% |
3.26% |
4.94% |
5.43% |
2.89% |
| March |
6.75% |
5.27% |
5.95% |
5.83% |
5.41% |
6.76% |
4.93% |
2.50% |
1.37% |
1.37% |
3.53% |
5.15% |
5.24% |
2.67% |
| April |
6.75% |
5.70% |
6.28% |
5.91% |
5.31% |
6.97% |
4.67% |
3.01% |
1.34% |
1.34% |
3.85% |
5.29% |
5.22% |
2.66% |
| May |
6.56% |
5.83% |
6.45% |
6.02% |
5.30% |
6.96% |
4.33% |
2.61% |
1.36% |
1.83% |
3.69% |
5.33% |
5.29% |
2.99% |
| June |
6.05% |
5.98% |
6.29% |
5.93% |
5.50% |
7.45% |
4.26% |
2.63% |
1.22% |
2.06% |
3.78% |
5.43% |
5.39% |
|
| July |
5.77% |
6.17% |
6.14% |
5.94% |
5.80% |
7.21% |
4.06% |
2.25% |
1.20% |
2.46% |
3.88% |
5.69% |
5.40% |
|
| August |
5.88% |
6.24% |
5.98% |
5.90% |
5.84% |
7.05% |
3.84% |
2.07% |
1.28% |
2.43% |
4.16% |
5.54% |
5.16% |
|
| September |
5.95% |
6.06% |
6.08% |
5.65% |
6.02% |
6.98% |
3.60% |
1.94% |
1.47% |
2.30% |
4.24% |
5.41% |
5.07% |
|
| October |
5.97% |
5.99% |
6.01% |
5.19% |
6.05% |
6.81% |
2.65% |
1.81% |
1.29% |
2.48% |
4.44% |
5.29% |
4.88% |
|
| November |
5.88% |
5.72% |
5.92% |
4.87% |
6.31% |
6.73% |
2.31% |
1.66% |
1.46% |
2.55% |
4.30% |
5.34% |
4.53% |
|
| December |
5.67% |
5.70% |
6.11% |
5.24% |
6.26% |
6.62% |
2.49% |
1.71% |
1.49% |
2.98% |
4.39% |
5.24% |
4.43% |
|
| Averages |
6.35% |
5.78% |
6.08% |
5.70% |
5.68% |
6.89% |
4.03% |
2.26% |
1.37% |
2.06% |
3.89% |
5.31% |
4.70% |
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Thinking of refinancing?
Check the 30 year fixed mortgage rates “LIBOR Index” means the rate for deposits in United States dollars for maturities of six months which appears on Telerate Page 3750 as of the relevant date and time of determination. Telerate Page 3750 means the display page so designated on the Telerate Service (or such other page as may replace that page on such service, or such other service as may be nominated as the information vendor for the purpose of displaying the British Bankers Association fixing of the London Interbank Offered Rate. | 
