Schweitzer, Mark E; Venkatu, Guhan - In: Economic Commentary (2009) Jan
Adjustable-rate mortgages have typically been tied to either of two indexes, one based on U.S. treasuries, the other on … the London interbank offered rate, or Libor. The index is used to determine a mortgage’s new interest rate when it is … are based have diverged sharply, and borrowers with Libor-based adjustable-rate mortgages are likely to pay more than they …