LIBOR is the rate on dollar-denominated deposits, also know as Eurodollars, traded between banks in London. The index is quoted for one month, three months, six months as well as one-year periods.
LIBOR is the base interest rate paid on deposits between banks in the Eurodollar market. A Eurodollar is a dollar deposited in a bank in a country where the currency is not the dollar. The Eurodollar market has been around for over 40 years and is a major component of the International financial market. London is the center of the Euromarket in terms of volume.
The LIBOR rate quoted in the Wall Street Journal is an average of rate quotes from 16 major banks.
The most common quote for mortgages is the 6-month quote. LIBOR's cost of money is a widely monitored international interest rate indicator. LIBOR is currently being used by both Fannie Mae and Freddie Mac as an index on the loans they purchase.
LIBOR is quoted daily in the Wall Street Journal's Money Rates and compares most closely to the 1-Year Treasury Security index.
If you have a real estate or mortgage question and or would like immediate assistance, please email us. We can be reached at info@realestatecolorado.net One of us will respond faster then you expect.
Search For FREE! "Use Your Mouse to Rent Your House" tm
Denver Real Estate Blog Find Denver CO Real Estate News Denver Colorado Homes in our Denver real estate Blog
Breckenridge Real Estate Blog
Search Breckenridge Real Estate News on Breckenridge Colorado homes with our Breckenridge Blog
