1 Year Libor
1 Year LIBOR (Reported Monthly) Definition
What is the LIBOR Rate? What is the LIBOR Index?
LIBOR stands for “London Inter-Bank Offered Rate,” which is based on rates that contributor banks in London offer each other for inter-bank deposits. From a bank’s perspective, deposits are funds that are loaned to them. So in effect, this is a rate at which a fellow London bank can borrow money from other banks in any particular currency. As such, rate calculations are very complex because they incorporate variables such as time, maturity, and exchange rates amongst a variety of currencies. There are hundreds of rates reported each month in numerous currencies.
To assist those with adjustable rate loans, we report the 1 Year LIBOR (12 Month LIBOR) on or after the first of the month, which is commonly used to benchmark adjustable loans. So we publish the LIBOR for a twelve month deposit in U.S. Dollars on the last business day of the previous month. For instance, the reported LIBOR rate for February is the rate published on February 1, reflecting the rate for the day of January 31.
Historical Note: This monthly reported rate is a common index for adjustable rate mortgages using a LIBOR index. Prior to July 2007, the Fannie Mae LIBOR was published as a standard adjustable rate mortgage index. Fannie Mae discontinued the use and publication of its own rates at the end of June 2007 and suggested the replacement rate index use this current methodology, which is similar to the Wall Street Journal LIBOR (WSJ LIBOR).
1 Year Libor History
If you are looking for mortgage rates, they can be found at https://www.moneycafe.com/mortgage-rates/
Reasonable efforts are made to maintain accurate information. However, information could contain errors or inaccuracies and is presented without warranty. No liability is assumed for errors or omissions.