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Last market hits the finish line! A final update for HSH's Home Price Recovery Index.

Last market hits the finish line! A final update for HSH's Home Price Recovery Index.

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 September 2020 to September 2021

Date SOFR 30 Day Average SOFR 90 Day Average SOFR 180 Day Average
Sep-10-2021 0.05000 0.04778 0.02889
Sep-09-2021 0.05000 0.04734 0.02867
Sep-08-2021 0.05000 0.04689 0.02845
Sep-07-2021 0.05000 0.04645 0.02822
Sep-03-2021 0.05000 0.04467 0.02756
Sep-02-2021 0.05000 0.04422 0.02739
Sep-01-2021 0.05000 0.04378 0.02722
Aug-31-2021 0.05000 0.04334 0.02706
Aug-30-2021 0.05000 0.04289 0.02700
Aug-27-2021 0.05000 0.04156 0.02656
Aug-26-2021 0.05000 0.04111 0.02634
Aug-25-2021 0.05000 0.04067 0.02611
Aug-24-2021 0.05000 0.04022 0.02600
Aug-23-2021 0.05000 0.03978 0.02583
Aug-20-2021 0.05000 0.03845 0.02533
Aug-19-2021 0.05000 0.03800 0.02517
Aug-18-2021 0.05000 0.03756 0.02500
Aug-17-2021 0.05000 0.03711 0.02489
Aug-16-2021 0.05000 0.03667 0.02495
Aug-13-2021 0.05000 0.03533 0.02500
Aug-12-2021 0.05000 0.03489 0.02500
Aug-11-2021 0.05000 0.03445 0.02500
Aug-10-2021 0.05000 0.03400 0.02506
Aug-09-2021 0.05000 0.03356 0.02511
Aug-06-2021 0.05000 0.03222 0.02478
Aug-05-2021 0.05000 0.03178 0.02461
Aug-04-2021 0.05000 0.03133 0.02445
Aug-03-2021 0.05000 0.03089 0.02445
Aug-02-2021 0.05000 0.03045 0.02456
Jul-30-2021 0.05000 0.02911 0.02483
Jul-29-2021 0.05000 0.02867 0.02489
Jul-28-2021 0.05000 0.02822 0.02495
Jul-27-2021 0.05000 0.02778 0.02489
Jul-26-2021 0.05000 0.02733 0.02478
Jul-23-2021 0.05000 0.02600 0.02472
Jul-22-2021 0.05000 0.02556 0.02472
Jul-21-2021 0.05000 0.02511 0.02472
Jul-20-2021 0.05000 0.02467 0.02467
Jul-19-2021 0.05000 0.02422 0.02472
Jul-16-2021 0.04867 0.02289 0.02517
Jul-15-2021 0.04733 0.02245 0.02533
Jul-14-2021 0.04600 0.02200 0.02550
Jul-13-2021 0.04467 0.02156 0.02567
Jul-12-2021 0.04333 0.02111 0.02583
Jul-09-2021 0.03933 0.01978 0.02645
Jul-08-2021 0.03800 0.01933 0.02667
Jul-07-2021 0.03667 0.01889 0.02689
Jul-06-2021 0.03533 0.01844 0.02717
Jul-02-2021 0.03000 0.01667 0.02817
Jul-01-2021 0.02867 0.01622 0.02828
Jun-30-2021 0.02733 0.01578 0.02839
Jun-29-2021 0.02600 0.01533 0.02850
Jun-28-2021 0.02467 0.01489 0.02872
Jun-25-2021 0.02067 0.01356 0.02939
Jun-24-2021 0.01933 0.01311 0.02956
Jun-23-2021 0.01800 0.01267 0.02972
Jun-22-2021 0.01667 0.01222 0.02989
Jun-21-2021 0.01533 0.01178 0.02995
Jun-18-2021 0.01133 0.01044 0.03050
Jun-17-2021 0.01000 0.01000 0.03072
Jun-16-2021 0.01000 0.01000 0.03117
Jun-15-2021 0.01000 0.01000 0.03161
Jun-14-2021 0.01000 0.01000 0.03206
Jun-11-2021 0.01000 0.01000 0.03328
Jun-10-2021 0.01000 0.01000 0.03367
Jun-09-2021 0.01000 0.01000 0.03406
Jun-08-2021 0.01000 0.01011 0.03445
Jun-07-2021 0.01000 0.01022 0.03484
Jun-04-2021 0.01000 0.01056 0.03600
Jun-03-2021 0.01000 0.01067 0.03645
Jun-02-2021 0.01000 0.01078 0.03689
Jun-01-2021 0.01000 0.01111 0.03728
May-28-2021 0.01000 0.01156 0.03889
May-27-2021 0.01000 0.01156 0.03928
May-26-2021 0.01000 0.01178 0.03967
May-25-2021 0.01000 0.01189 0.04006
May-24-2021 0.01000 0.01189 0.04045
May-21-2021 0.01000 0.01233 0.04123
May-20-2021 0.01000 0.01244 0.04145
May-19-2021 0.01000 0.01267 0.04167
May-18-2021 0.01000 0.01322 0.04195
May-17-2021 0.01000 0.01378 0.04228
May-14-2021 0.01000 0.01511 0.04367
May-13-2021 0.01000 0.01556 0.04412
May-12-2021 0.01000 0.01611 0.04456
May-11-2021 0.01000 0.01667 0.04500
May-10-2021 0.01000 0.01711 0.04551
May-07-2021 0.01000 0.01744 0.04701
May-06-2021 0.01000 0.01756 0.04751
May-05-2021 0.01000 0.01800 0.04801
May-04-2021 0.01000 0.01867 0.04856
May-03-2021 0.01000 0.01933 0.04906
Apr-30-2021 0.01000 0.02111 0.05056
Apr-29-2021 0.01000 0.02167 0.05101
Apr-28-2021 0.01000 0.02200 0.05145
Apr-27-2021 0.01000 0.02222 0.05190
Apr-26-2021 0.01000 0.02245 0.05228
Apr-23-2021 0.01000 0.02389 0.05356
Apr-22-2021 0.01000 0.02433 0.05395
Apr-21-2021 0.01000 0.02467 0.05434
Apr-20-2021 0.01000 0.02522 0.05467
Apr-19-2021 0.01000 0.02589 0.05501
Apr-16-2021 0.01000 0.02822 0.05629
Apr-15-2021 0.01000 0.02900 0.05673
Apr-14-2021 0.01000 0.02978 0.05717
Apr-13-2021 0.01000 0.03056 0.05767
Apr-12-2021 0.01000 0.03133 0.05812
Apr-09-2021 0.01033 0.03400 0.05945
Apr-08-2021 0.01067 0.03489 0.05990
Apr-07-2021 0.01100 0.03589 0.06034
Apr-06-2021 0.01133 0.03689 0.06073
Apr-05-2021 0.01167 0.03800 0.06118
Apr-01-2021 0.01433 0.04100 0.06312
Mar-31-2021 0.01467 0.04167 0.06362
Mar-30-2021 0.01467 0.04256 0.06401
Mar-29-2021 0.01467 0.04356 0.06440
Mar-26-2021 0.01567 0.04600 0.06551
Mar-25-2021 0.01567 0.04678 0.06590
Mar-24-2021 0.01633 0.04756 0.06629
Mar-23-2021 0.01667 0.04811 0.06662
Mar-22-2021 0.01700 0.04878 0.06690
Mar-19-2021 0.01967 0.05145 0.06807
Mar-18-2021 0.02133 0.05234 0.06851
Mar-17-2021 0.02267 0.05323 0.06896
Mar-16-2021 0.02400 0.05411 0.06946
Mar-15-2021 0.02533 0.05500 0.06996
Mar-12-2021 0.03000 0.05734 0.07135
Mar-11-2021 0.03133 0.05812 0.07179
Mar-10-2021 0.03133 0.05878 0.07218
Mar-09-2021 0.03133 0.05945 0.07257
Mar-08-2021 0.03133 0.06000 0.07296
Mar-05-2021 0.03400 0.06223 0.07412
Mar-04-2021 0.03567 0.06300 0.07451
Mar-03-2021 0.03667 0.06345 0.07479
Mar-02-2021 0.03733 0.06389 0.07513
Mar-01-2021 0.03867 0.06456 0.07551
Feb-26-2021 0.04200 0.06701 0.07674
Feb-25-2021 0.04200 0.06756 0.07696
Feb-24-2021 0.04333 0.06823 0.07724
Feb-23-2021 0.04467 0.06901 0.07757
Feb-22-2021 0.04533 0.06945 0.07779
Feb-19-2021 0.04833 0.07045 0.07874
Feb-18-2021 0.04967 0.07067 0.07896
Feb-17-2021 0.05033 0.07067 0.07902
Feb-16-2021 0.05100 0.07078 0.07907
Feb-12-2021 0.05500 0.07267 0.08002
Feb-11-2021 0.05567 0.07301 0.08018
Feb-10-2021 0.05667 0.07334 0.08035
Feb-09-2021 0.05800 0.07390 0.08057
Feb-08-2021 0.06033 0.07478 0.08096
Feb-05-2021 0.06800 0.07745 0.08218
Feb-04-2021 0.07000 0.07801 0.08241
Feb-03-2021 0.07100 0.07845 0.08252
Feb-02-2021 0.07100 0.07879 0.08263
Feb-01-2021 0.07100 0.07912 0.08274
Jan-29-2021 0.07267 0.08034 0.08335
Jan-28-2021 0.07467 0.08090 0.08368
Jan-27-2021 0.07667 0.08156 0.08407
Jan-26-2021 0.07834 0.08212 0.08446
Jan-25-2021 0.07900 0.08245 0.08463
Jan-22-2021 0.08134 0.08356 0.08546
Jan-21-2021 0.08234 0.08401 0.08580
Jan-20-2021 0.08334 0.08412 0.08602
Jan-19-2021 0.08400 0.08412 0.08619
Jan-15-2021 0.08534 0.08445 0.08691
Jan-14-2021 0.08567 0.08456 0.08713
Jan-13-2021 0.08567 0.08479 0.08735
Jan-12-2021 0.08567 0.08490 0.08757
Jan-11-2021 0.08534 0.08490 0.08780
Jan-08-2021 0.08434 0.08490 0.08802
Jan-07-2021 0.08334 0.08479 0.08802
Jan-06-2021 0.08267 0.08456 0.08802
Jan-05-2021 0.08200 0.08434 0.08796
Jan-04-2021 0.08167 0.08434 0.08796
Dec-31-2020 0.08334 0.08556 0.08874
Dec-30-2020 0.08334 0.08545 0.08885
Dec-29-2020 0.08267 0.08523 0.08891
Dec-28-2020 0.08234 0.08501 0.08902
Dec-24-2020 0.08200 0.08501 0.08913
Dec-23-2020 0.08167 0.08512 0.08924
Dec-22-2020 0.08100 0.08501 0.08935
Dec-21-2020 0.07967 0.08479 0.08930
Dec-18-2020 0.07667 0.08468 0.08913
Dec-17-2020 0.07667 0.08468 0.08913
Dec-16-2020 0.07700 0.08479 0.08913
Dec-15-2020 0.07700 0.08490 0.08913
Dec-14-2020 0.07734 0.08512 0.08919
Dec-11-2020 0.07867 0.08545 0.08930
Dec-10-2020 0.07934 0.08556 0.08930
Dec-09-2020 0.08000 0.08568 0.08930
Dec-08-2020 0.08100 0.08590 0.08935
Dec-07-2020 0.08167 0.08601 0.08930
Dec-04-2020 0.08300 0.08601 0.08902
Dec-03-2020 0.08367 0.08612 0.08896
Dec-02-2020 0.08467 0.08634 0.08891
Dec-01-2020 0.08500 0.08645 0.08885
Nov-30-2020 0.08500 0.08645 0.08869
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

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

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