Mortgage Insurance Companies
Rate Indexes and Trends
This link takes you to the 10 Year Bond website. Although mortgage rates are tied to Mortgage Backed Securities, the 10 Year Bond is the best indicator we have to see what direction interest rates are going. You should monitor this site before locking in your Rate.
Adjustable Rate Mortgages are tied to an index. This site gives current and historical trends for various interest rate. ARM mortgages are not always tied to the LIBOR or Monthly Treasury Indexes.
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The London Interbank Offered Rate (LIBOR) is an interest rate based on the average interest rates at which a large number of international banks in London lend money to one another.
It’s the rate banks charge each other for special overnight loans. They borrow fed funds from each other to fulfill the Fed’s reserve requirement each night. The Prime Rate is used for HELOC’s and Consumer lending and has no real effect on long term mortgage rates.
This index is an average yield on United States Treasury securities adjusted to a constant maturity of 1 year, as made available by the Federal Reserve Board. Some ARM loans are tied to this index.