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It's a question almost everyone is asking: "Should I refinance my mortgage?" If so, what's the best way to pay for my mortgage refinance

It's a question almost everyone is asking: "Should I refinance my mortgage?" If so, what's the best way to pay for my mortgage refinance

ARM Indexes: SOFR - Secured Overnight Financing Rate / SOFR Index

SOFR - Secured Overnight Financing Rate is designed as a replacement for LIBOR, which is being retired as a financial index in 2021. Below, we display both current rates and historical values for SOFR.

What is SOFR?

SOFR is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities; values are published by the Federal Reserve Bank of New York.

SOFR Rates

Like LIBOR, SOFR comes in a number of time periods -- an overnight rate and rates that are an average of the previous 30, 90 or 180 days. These longer-period SOFRs are compounded averages of the SOFR over rolling 30-, 90-, and 180-calendar day periods. There is also a base-line index (the "SOFR Index") that can be used to calculate values for custom time periods. This "SOFR Index" measures the cumulative impact of compounding the SOFR on a unit of investment over time, with the initial value set to 1.00000000 on April 2, 2018, the first value date of the SOFR. The SOFR Index value reflects the effect of compounding the SOFR each business day and allows the calculation of compounded SOFR averages over custom time periods.

SOFR is a new index, made officially available starting in March 2020, so there is no lengthy history against which to compare it to the performance of LIBOR or any other available index. Also, although SOFR is a daily index series, HSH.com will be providing the data each Tuesday morning covering the previous five days' worth of values.

Although ARMs tied to SOFR could have any adjustment period, the standard offerings from Fannie Mae and Freddie Mac will be hybrid ARMs that adjust every six months after an initial fixed-rate period of 3-, 5-, 7 or 10 years.

SOFR-based ARMs eligible to be sold to Fannie and Freddie will use the 30-day average of SOFR as a basis for regular interest rate adjustments. However, most ARMs are not sold to Fannie Mae or Freddie Mac, and lenders are free to use other published values of the index such as the 90 day or 180 day versions, and lenders or investors can also create a "custom" SOFR of any time period to suit their needs based on the "SOFR Index" described above.

SOFR ARM Margins

To the SOFR value being used, the lender will add a markup, called a "margin", and the sum of the two becomes your loan's new interest rate. The margin called for in mortgages sold to Fannie Mae or Freddie Mac can be up to 300 basis points; as such, if the index value was 1 percent (100 basis points), the lender would add 300 basis points to it, and your loan's new interest rate would be 4 percent until the next rate adjustment occurs. For loans not sold to Fannie or Freddie, lenders are free to set their own margins and their own adjustment periods.

SOFR ARM Caps

Like other ARMs, SOFR ARMs will also have limiters on how much the interest rate can change at the first adjustment, at each subsequent adjustment and over the life of the loan. These are called "initial", "periodic" and "lifetime" caps.

For SOFR ARMs eligible to be sold the GSEs, those with fixed rate periods of 3 or 5 years have an initial cap that is 2 percentage points (above or below) the original fixed interest rate, followed by a change not more than 1 percent at each six month interval, and the interest rate can never be more than 5 percentage points above the initial rate on the loan (called "2%/1%/5%" caps). For SOFR ARMs with initial fixed-rate periods of 7 or 10 years, the initial cap is 5%, followed by a 1% periodic cap and a 5% lifetime cap ("5%/1%/5%" caps). As such, the initial interest rate could rise all the way to the maximum possible interest rate at the first rate adjustment.

Learn more about how ARMs work.

Although only available in monthly values, indexes comparable to SOFR include the Federal Cost of Funds and possibly the MTA - Moving Treasury Average (sometimes called MAT or 12-MAT).

L O A D I N G

ARM Indexes: SOFR - Secured Overnight Financing Rate / SOFR Index from November 2019 to November 2020

Date SOFR 30 Day Average SOFR 90 Day Average SOFR 180 Day Average
Nov-27-2020 0.08567 0.08634 0.08841
Nov-25-2020 0.08634 0.08612 0.08819
Nov-24-2020 0.08667 0.08612 0.08813
Nov-23-2020 0.08767 0.08645 0.08819
Nov-20-2020 0.09000 0.08723 0.08813
Nov-19-2020 0.09067 0.08734 0.08802
Nov-18-2020 0.09134 0.08734 0.08785
Nov-17-2020 0.09134 0.08734 0.08746
Nov-16-2020 0.09100 0.08723 0.08696
Nov-13-2020 0.09134 0.08734 0.08619
Nov-12-2020 0.09134 0.08734 0.08596
Nov-10-2020 0.09067 0.08712 0.08524
Nov-09-2020 0.09034 0.08712 0.08491
Nov-06-2020 0.08900 0.08679 0.08424
Nov-05-2020 0.08867 0.08656 0.08396
Nov-04-2020 0.08834 0.08645 0.08374
Nov-03-2020 0.08834 0.08634 0.08346
Nov-02-2020 0.08800 0.08612 0.08313
Oct-30-2020 0.08767 0.08645 0.08235
Oct-29-2020 0.08700 0.08656 0.08202
Oct-28-2020 0.08700 0.08679 0.08174
Oct-27-2020 0.08667 0.08679 0.08146
Oct-26-2020 0.08634 0.08690 0.08102
Oct-23-2020 0.08534 0.08756 0.08007
Oct-22-2020 0.08534 0.08790 0.07985
Oct-21-2020 0.08567 0.08823 0.07963
Oct-20-2020 0.08600 0.08845 0.07924
Oct-19-2020 0.08600 0.08868 0.07879
Oct-16-2020 0.08667 0.08968 0.07763
Oct-15-2020 0.08667 0.08990 0.07724
Oct-14-2020 0.08667 0.09023 0.07690
Oct-13-2020 0.08667 0.09068 0.07657
Oct-09-2020 0.08667 0.09123 0.07524
Oct-08-2020 0.08700 0.09145 0.07485
Oct-07-2020 0.08700 0.09157 0.07440
Oct-06-2020 0.08667 0.09157 0.07390
Oct-05-2020 0.08667 0.09168 0.07346
Oct-02-2020 0.08600 0.09190 0.07196
Oct-01-2020 0.08634 0.09223 0.07157
Sep-30-2020 0.08667 0.09257 0.07118
Sep-29-2020 0.08667 0.09301 0.07085
Sep-28-2020 0.08634 0.09323 0.07046
Sep-25-2020 0.08534 0.09323 0.06929
Sep-24-2020 0.08567 0.09334 0.06896
Sep-23-2020 0.08634 0.09368 0.06868
Sep-22-2020 0.08634 0.09379 0.06834
Sep-21-2020 0.08600 0.09368 0.06796
Sep-18-2020 0.08467 0.09357 0.06684
Sep-17-2020 0.08434 0.09334 0.06618
Sep-16-2020 0.08434 0.09334 0.06618
Sep-15-2020 0.08400 0.09323 0.06596
Sep-14-2020 0.08400 0.09323 0.06601
Sep-11-2020 0.08400 0.09301 0.07507
Sep-10-2020 0.08434 0.09290 0.08068
Sep-09-2020 0.08434 0.09279 0.08630
Sep-08-2020 0.08434 0.09257 0.09246
Sep-04-2020 0.08434 0.09179 0.11520
Sep-03-2020 0.08400 0.09145 0.12076
Sep-02-2020 0.08434 0.09123 0.12637
Sep-01-2020 0.08467 0.09090 0.13210
Aug-31-2020 0.08500 0.09068 0.13843
Aug-28-2020 0.08767 0.09034 0.16412
Aug-27-2020 0.08867 0.09023 0.17263
Aug-26-2020 0.08967 0.09012 0.18113
Aug-25-2020 0.09034 0.08990 0.18947
Aug-24-2020 0.09100 0.08968 0.19781
Aug-21-2020 0.09400 0.08868 0.22306
Aug-20-2020 0.09534 0.08834 0.23146
Aug-19-2020 0.09634 0.08756 0.23975
Aug-18-2020 0.09734 0.08668 0.24815
Aug-17-2020 0.09800 0.08601 0.25643
Aug-14-2020 0.10134 0.08456 0.28141
Aug-13-2020 0.10200 0.08412 0.28970
Aug-12-2020 0.10234 0.08334 0.29799
Aug-11-2020 0.10234 0.08268 0.30617
Aug-10-2020 0.10267 0.08234 0.31440
Aug-07-2020 0.10367 0.08134 0.33928
Aug-06-2020 0.10400 0.08101 0.34757
Aug-05-2020 0.10434 0.08056 0.35586
Aug-04-2020 0.10500 0.08012 0.36421
Aug-03-2020 0.10534 0.07956 0.37250
Jul-31-2020 0.10634 0.07745 0.39749
Jul-30-2020 0.10634 0.07667 0.40584
Jul-29-2020 0.10600 0.07612 0.41425
Jul-28-2020 0.10534 0.07512 0.42249
Jul-27-2020 0.10467 0.07412 0.43045
Jul-24-2020 0.10300 0.07178 0.45433
Jul-23-2020 0.10200 0.07101 0.46229
Jul-22-2020 0.10134 0.07001 0.47026
Jul-21-2020 0.10067 0.06889 0.47822
Jul-20-2020 0.09967 0.06767 0.48613
Jul-17-2020 0.09667 0.06456 0.50985
Jul-16-2020 0.09567 0.06356 0.51776
Jul-15-2020 0.09434 0.06245 0.52561
Jul-14-2020 0.09334 0.06156 0.53363
Jul-13-2020 0.09267 0.06112 0.54177
Jul-10-2020 0.09034 0.05823 0.56594
Jul-09-2020 0.08967 0.05723 0.57402
Jul-08-2020 0.08867 0.05623 0.58210
Jul-07-2020 0.08767 0.05523 0.59018
Jul-06-2020 0.08667 0.05423 0.59826
Jul-02-2020 0.08100 0.04978 0.63041
Jul-01-2020 0.07934 0.04867 0.63843
Jun-30-2020 0.07800 0.04767 0.64646
Jun-29-2020 0.07734 0.04689 0.65465
Jun-26-2020 0.07534 0.04456 0.67907
Jun-25-2020 0.07434 0.04367 0.68709
Jun-24-2020 0.07300 0.04289 0.69518
Jun-23-2020 0.07200 0.04222 0.70326
Jun-22-2020 0.07067 0.04145 0.71129
Jun-19-2020 0.06400 0.03956 0.73526
Jun-18-2020 0.06233 0.03900 0.74329
Jun-17-2020 0.06067 0.03867 0.75132
Jun-16-2020 0.05933 0.03878 0.75935
Jun-15-2020 0.05800 0.04378 0.76738
Jun-11-2020 0.05300 0.07978 0.80040
Jun-10-2020 0.05267 0.09234 0.80860
Jun-09-2020 0.05200 0.10423 0.81668
Jun-08-2020 0.05167 0.11579 0.82488
Jun-05-2020 0.05000 0.15002 0.84971
Jun-04-2020 0.04933 0.16147 0.85797
Jun-03-2020 0.04900 0.17326 0.86628
Jun-02-2020 0.04767 0.18615 0.87454
Jun-01-2020 0.04667 0.20371 0.88279
May-29-2020 0.04333 0.25496 0.90874
May-28-2020 0.04167 0.27208 0.91762
May-27-2020 0.04067 0.28898 0.92649
May-26-2020 0.03967 0.30588 0.93481
May-22-2020 0.03700 0.37450 0.96869
May-21-2020 0.03667 0.39184 0.97739
May-20-2020 0.03700 0.40953 0.98616
May-19-2020 0.03667 0.42677 0.99476
May-18-2020 0.03633 0.44412 1.00330
May-15-2020 0.03433 0.49518 1.02882
May-14-2020 0.03567 0.51253 1.03758
May-13-2020 0.03500 0.52955 1.04624
May-12-2020 0.03333 0.54635 1.05473
May-11-2020 0.03167 0.56326 1.06316
May-08-2020 0.02667 0.61400 1.08835
May-07-2020 0.02533 0.63103 1.09678
May-06-2020 0.02400 0.64816 1.10522
May-05-2020 0.02267 0.66530 1.11365
May-04-2020 0.02133 0.68255 1.12214
May-01-2020 0.01933 0.73487 1.14801
Apr-30-2020 0.01833 0.75223 1.15662
Apr-29-2020 0.01833 0.76971 1.16539
Apr-28-2020 0.01833 0.78663 1.17517
Apr-27-2020 0.01767 0.80333 1.18517
Apr-24-2020 0.01567 0.85343 1.21524
Apr-23-2020 0.01567 0.87035 1.22546
Apr-22-2020 0.01600 0.88739 1.23569
Apr-21-2020 0.01700 0.90443 1.24603
Apr-20-2020 0.01767 0.92136 1.25638
Apr-17-2020 0.02133 0.97180 1.28724
Apr-16-2020 0.03833 0.98862 1.29758
Apr-15-2020 0.04600 1.00555 1.30792
Apr-14-2020 0.08067 1.02226 1.31849
Apr-13-2020 0.11667 1.03930 1.32984
Apr-09-2020 0.26736 1.10782 1.37184
Apr-08-2020 0.30336 1.12498 1.38214
Apr-07-2020 0.33971 1.14213 1.39243
Apr-06-2020 0.37605 1.15941 1.40272
Apr-03-2020 0.49009 1.21089 1.43333
Apr-02-2020 0.54444 1.22805 1.44345
Apr-01-2020 0.59713 1.24510 1.45358
Mar-31-2020 0.65016 1.26227 1.46382
Mar-30-2020 0.70318 1.27943 1.47412
Mar-27-2020 0.86095 1.33037 1.50781
Mar-26-2020 0.91365 1.34732 1.51794
Mar-25-2020 0.96602 1.36415 1.52807
Mar-24-2020 1.01840 1.38099 1.53837
Mar-23-2020 1.07044 1.39771 1.54951
Mar-20-2020 1.22558 1.44744 1.58059
Mar-19-2020 1.27697 1.46383 1.59066
Mar-18-2020 1.32635 1.47978 1.60052
Mar-17-2020 1.36105 1.49082 1.60842
Mar-16-2020 1.40510 1.50509 1.62124
Mar-13-2020 1.45248 1.52071 1.65809
Mar-12-2020 1.46517 1.52450 1.66369
Mar-11-2020 1.47952 1.52874 1.66957
Mar-10-2020 1.49520 1.53353 1.67568
Mar-09-2020 1.51155 1.53866 1.68162
Mar-06-2020 1.56028 1.55383 1.69904
Mar-05-2020 1.57630 1.55863 1.70481
Mar-04-2020 1.58831 1.56220 1.70996
Mar-03-2020 1.58698 1.56108 1.71316
Mar-02-2020 1.58731 1.56063 1.71663

3-Month TCM
6-Month TCM
1-Year TCM

More ARM Indexes & Info

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