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What does 1 yr LIBOR index tell us?
December 20th, 2009 10:34 PM

On Friday Dec 18th, the 1 yr LIBOR index was 0.968. So the ARM rate should be lower. But the reality is that the ARM rate was higher compared to the most of time in November.

Most people will ask why? Yes, I want to know the answer as well.
1)The lenders are more interested in the fixed programs now when
15 yr fixed and 30 yr fixed at history low end of Nov. They need
time to close those transactions. Abd they don't have any incentive
to lower the ARM rate yet. Until they close most of the pipeline.

2)The lenders are not yet ready to lower their profit margins
to attract more business(It does make sense, right?)


Posted in:General
Posted by Eric Fang on December 20th, 2009 10:34 PMPost a Comment

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