1 Year ARM Surpasses 30 Fixed Year For The First Time

I´m pretty sure that the majority of mortgage borrowers never heard of LIBOR as the most important rate when it comes to their mortgage.....

Ich bin mir ziemlich sicher das die Mehrzahl der Hypothekenschuldner noch nie in Ihrem Leben vom LIBOR gehört haben. Ärgerlich wird es wenn dieser Zinssatz dann die Anpassung des laufenden Kredites maßgeblich bestimmt......

LIBOR is an abbreviation for "London Interbank Offered Rate," and is the interest rate offered by a specific group of London banks for U.S. dollar deposits of a stated maturity. LIBOR is used as a base index for setting rates of some adjustable rate financial instruments, including Adjustable Rate Mortgages (ARMs) and other loans.

The average rate on a one-year adjustable mortgage surged to 6.51 percent, the highest since January 2001, from 5.84 percent the prior week. The rate also surpassed the cost of a 30-year fixed loan for the first time.