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Wondering if the income needed to buy a home in the top 50 metro areas is starting to decline? Hint: Not yet.

Wondering if the income needed to buy a home in the top 50 metro areas is starting to decline? Hint: Not yet.

ARM Indexes: SOFR - Secured Overnight Financing Rate / SOFR 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 SOFR rates and historical values for SOFR for a range of time periods.

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 Rate / SOFR Index from November 2021 to November 2022

Date SOFR 30 Day Average SOFR 90 Day Average SOFR 180 Day Average
Nov-25-2022 3.59867 3.00776 2.31973
Nov-23-2022 3.54687 2.97396 2.28591
Nov-22-2022 3.52080 2.95684 2.26894
Nov-21-2022 3.49471 2.93971 2.25197
Nov-18-2022 3.41752 2.88869 2.20109
Nov-17-2022 3.39212 2.87168 2.18413
Nov-16-2022 3.36672 2.85456 2.16711
Nov-15-2022 3.34132 2.83766 2.15021
Nov-14-2022 3.31624 2.82088 2.13337
Nov-10-2022 3.21771 2.75389 2.06635
Nov-09-2022 3.19332 2.73711 2.04957
Nov-08-2022 3.16891 2.72033 2.03279
Nov-07-2022 3.14450 2.70366 2.01596
Nov-04-2022 3.06899 2.65267 1.96513
Nov-03-2022 3.04360 2.63567 1.94819
Nov-02-2022 3.04193 2.62717 1.93546
Nov-01-2022 3.03959 2.61867 1.92278
Oct-31-2022 3.03724 2.61029 1.90736
Oct-28-2022 3.02956 2.58424 1.86099
Oct-27-2022 3.02756 2.57563 1.84552
Oct-26-2022 3.02622 2.56724 1.83010
Oct-25-2022 3.02522 2.55058 1.81474
Oct-24-2022 3.02454 2.53403 1.79944
Oct-21-2022 2.99682 2.48384 1.75320
Oct-20-2022 2.97109 2.46696 1.73773
Oct-19-2022 2.94536 2.45008 1.72221
Oct-18-2022 2.91963 2.43320 1.70664
Oct-17-2022 2.89357 2.41632 1.69106
Oct-14-2022 2.81674 2.36603 1.64480
Oct-13-2022 2.79135 2.34927 1.62939
Oct-12-2022 2.76596 2.33239 1.61399
Oct-11-2022 2.74024 2.31541 1.59854
Oct-07-2022 2.63738 2.24760 1.53685
Oct-06-2022 2.61200 2.23061 1.52145
Oct-05-2022 2.58695 2.21386 1.50612
Oct-04-2022 2.56189 2.19710 1.49078
Oct-03-2022 2.53816 2.18079 1.49078
Sep-30-2022 2.46903 2.13187 1.43069
Sep-29-2022 2.44666 2.11578 1.41580
Sep-28-2022 2.42328 2.09925 1.40081
Sep-27-2022 2.39990 2.08283 1.38576
Sep-26-2022 2.37618 2.06642 1.37055
Sep-23-2022 2.30473 2.01562 1.32508
Sep-22-2022 2.28069 1.99853 1.30993
Sep-21-2022 2.28169 1.98949 1.29891
Sep-20-2022 2.28236 1.98044 1.28779
Sep-19-2022 2.28269 1.97129 1.27661
Sep-16-2022 2.28403 1.94382 1.24340
Sep-15-2022 2.28436 1.93455 1.23233
Sep-14-2022 2.28503 1.92540 1.22132
Sep-13-2022 2.28503 1.90776 1.21026
Sep-12-2022 2.28502 1.89001 1.19779
Sep-09-2022 2.28503 1.83856 1.16041
Sep-08-2022 2.28536 1.82148 1.14795
Sep-07-2022 2.28536 1.80440 1.13549
Sep-06-2022 2.28503 1.78733 1.12298
Sep-02-2022 2.28437 1.71982 1.07293
Sep-01-2022 2.28471 1.70297 1.06042
Aug-31-2022 2.28437 1.68624 1.04791
Aug-30-2022 2.28371 1.66961 1.03540
Aug-29-2022 2.28337 1.65299 1.02295
Aug-26-2022 2.25799 1.60279 0.98560
Aug-25-2022 2.23295 1.58606 0.97315
Aug-24-2022 2.20824 1.56944 0.96076
Aug-23-2022 2.18319 1.55282 0.94837
Aug-22-2022 2.15781 1.53609 0.93592
Aug-19-2022 2.08236 1.48591 0.89859
Aug-18-2022 2.05765 1.46918 0.88614
Aug-17-2022 2.03261 1.45245 0.87364
Aug-16-2022 2.00757 1.43573 0.86115
Aug-15-2022 1.98253 1.41911 0.84865
Aug-12-2022 1.90775 1.36939 0.81133
Aug-11-2022 1.88305 1.35278 0.79889
Aug-10-2022 1.85801 1.33617 0.78646
Aug-09-2022 1.83264 1.31934 0.77396
Aug-08-2022 1.80760 1.30262 0.76147
Aug-05-2022 1.73317 1.25246 0.72417
Aug-03-2022 1.68244 1.21892 0.69919
Aug-02-2022 1.65640 1.19663 0.68665
Aug-01-2022 1.63103 1.17456 0.67422
Jul-29-2022 1.55494 1.10827 0.63710
Jul-28-2022 1.52958 1.08599 0.62468
Jul-27-2022 1.52857 1.07206 0.61643
Jul-26-2022 1.52624 1.05814 0.60813
Jul-25-2022 1.52390 1.04410 0.59982
Jul-22-2022 1.51689 1.00233 0.57520
Jul-21-2022 1.51422 0.98830 0.56695
Jul-20-2022 1.51155 0.97415 0.55871
Jul-19-2022 1.50855 0.96000 0.55035
Jul-18-2022 1.50554 0.94597 0.54205
Jul-15-2022 1.47150 0.90421 0.51715
Jul-14-2022 1.44347 0.89040 0.50891
Jul-13-2022 1.41677 0.87660 0.50067
Jul-12-2022 1.39041 0.86268 0.49237
Jul-11-2022 1.36438 0.84887 0.48413
Jul-08-2022 1.28663 0.80779 0.45940
Jul-06-2022 1.23558 0.78018 0.44281
Jul-05-2022 1.21022 0.76637 0.43451
Jul-01-2022 1.11248 0.71206 0.40178
Jun-30-2022 1.08879 0.69870 0.39371
Jun-29-2022 1.06443 0.68512 0.38558
Jun-28-2022 1.03975 0.67121 0.37740
Jun-27-2022 1.01572 0.65763 0.36933
Jun-24-2022 0.94768 0.61824 0.34579
Jun-23-2022 0.92566 0.60533 0.33806
Jun-22-2022 0.90331 0.59220 0.33026
Jun-21-2022 0.88096 0.57907 0.32247
Jun-17-2022 0.79224 0.52756 0.29126
Jun-16-2022 0.77056 0.51477 0.28347
Jun-15-2022 0.77390 0.51032 0.27986
Jun-14-2022 0.77723 0.50320 0.27630
Jun-13-2022 0.77924 0.49563 0.27251
Jun-10-2022 0.78290 0.47227 0.26083
Jun-09-2022 0.78391 0.46448 0.25694
Jun-08-2022 0.78457 0.45659 0.25299
Jun-07-2022 0.78491 0.44858 0.24898
Jun-06-2022 0.78491 0.44046 0.24492
Jun-03-2022 0.76923 0.41610 0.23274
Jun-02-2022 0.75289 0.40787 0.22863
Jun-01-2022 0.73621 0.39953 0.22446
May-31-2022 0.71920 0.39130 0.22034
May-27-2022 0.65250 0.35882 0.20410
May-26-2022 0.63549 0.35070 0.20004
May-25-2022 0.61848 0.34259 0.19598
May-24-2022 0.60147 0.33447 0.19192
May-23-2022 0.58446 0.32635 0.18786
May-20-2022 0.53311 0.30200 0.17569
May-19-2022 0.51610 0.29377 0.17157
May-18-2022 0.49943 0.28554 0.16746
May-17-2022 0.48242 0.27720 0.16329
May-16-2022 0.46542 0.26886 0.15912
May-13-2022 0.41540 0.24418 0.14677
May-12-2022 0.39873 0.23596 0.14266
May-11-2022 0.38272 0.22784 0.13860
May-10-2022 0.36672 0.21961 0.13454
May-09-2022 0.35071 0.21150 0.13049
May-06-2022 0.30270 0.18715 0.11831
May-05-2022 0.28637 0.17893 0.11420
May-04-2022 0.28637 0.17615 0.11281
May-03-2022 0.28637 0.17337 0.11142
May-02-2022 0.28637 0.17059 0.11003
Apr-29-2022 0.28703 0.16292 0.10619
Apr-28-2022 0.28703 0.16036 0.10492
Apr-27-2022 0.28703 0.15770 0.10364
Apr-26-2022 0.28737 0.15514 0.10241
Apr-25-2022 0.28770 0.15269 0.10119
Apr-22-2022 0.28803 0.14525 0.09747
Apr-21-2022 0.28870 0.14291 0.09630
Apr-20-2022 0.28937 0.14036 0.09508
Apr-19-2022 0.29003 0.13780 0.09369
Apr-18-2022 0.29037 0.13513 0.09224
Apr-14-2022 0.27503 0.12446 0.08680
Apr-13-2022 0.26703 0.12180 0.08546
Apr-12-2022 0.25903 0.11913 0.08413
Apr-11-2022 0.25069 0.11635 0.08274
Apr-08-2022 0.22569 0.10801 0.07857
Apr-07-2022 0.21735 0.10524 0.07718
Apr-06-2022 0.20902 0.10246 0.07579
Apr-05-2022 0.20068 0.09968 0.07440
Apr-04-2022 0.19235 0.09690 0.07301
Apr-01-2022 0.16734 0.08856 0.06884
Mar-31-2022 0.15934 0.08590 0.06751
Mar-30-2022 0.15201 0.08345 0.06629
Mar-29-2022 0.14434 0.08090 0.06501
Mar-28-2022 0.13667 0.07834 0.06373
Mar-25-2022 0.11367 0.07067 0.05990
Mar-24-2022 0.10634 0.06823 0.05868
Mar-23-2022 0.09900 0.06578 0.05745
Mar-22-2022 0.09134 0.06323 0.05617
Mar-21-2022 0.08334 0.06056 0.05484
Mar-18-2022 0.05833 0.05211 0.05067
Mar-17-2022 0.05000 0.04934 0.04928
Mar-16-2022 0.05000 0.04934 0.04928
Mar-15-2022 0.05000 0.04934 0.04928
Mar-14-2022 0.05000 0.04934 0.04928
Mar-11-2022 0.04967 0.04934 0.04928
Mar-10-2022 0.04967 0.04934 0.04928
Mar-09-2022 0.04967 0.04934 0.04928
Mar-08-2022 0.04967 0.04934 0.04928
Mar-07-2022 0.04967 0.04934 0.04928
Mar-04-2022 0.04967 0.04934 0.04928
Mar-03-2022 0.04967 0.04934 0.04928
Mar-02-2022 0.04967 0.04934 0.04928
Mar-01-2022 0.04967 0.04934 0.04928
Feb-28-2022 0.04967 0.04934 0.04928
Feb-25-2022 0.04900 0.04934 0.04928
Feb-24-2022 0.04900 0.04934 0.04928
Feb-23-2022 0.04867 0.04934 0.04928
Feb-22-2022 0.04867 0.04934 0.04928
Feb-18-2022 0.04833 0.04934 0.04928
Feb-17-2022 0.04833 0.04934 0.04928
Feb-16-2022 0.04833 0.04934 0.04928
Feb-15-2022 0.04833 0.04934 0.04928
Feb-14-2022 0.04833 0.04934 0.04928
Feb-11-2022 0.04833 0.04934 0.04928
Feb-10-2022 0.04833 0.04934 0.04928
Feb-09-2022 0.04967 0.04945 0.04934
Feb-08-2022 0.04967 0.04945 0.04934
Feb-07-2022 0.04967 0.04945 0.04934
Feb-04-2022 0.04967 0.04945 0.04934
Feb-03-2022 0.04967 0.04945 0.04934
Feb-02-2022 0.04967 0.04945 0.04934
Feb-01-2022 0.04967 0.04945 0.04934
Jan-31-2022 0.04967 0.04945 0.04934
Jan-28-2022 0.04967 0.04945 0.04934
Jan-27-2022 0.04900 0.04956 0.04939
Jan-26-2022 0.04933 0.04967 0.04945
Jan-25-2022 0.04933 0.04967 0.04945
Jan-24-2022 0.04967 0.04978 0.04951
Jan-21-2022 0.04967 0.04967 0.04951
Jan-20-2022 0.05000 0.04978 0.04956
Jan-19-2022 0.04967 0.04956 0.04956
Jan-18-2022 0.04967 0.04934 0.04956
Jan-14-2022 0.04967 0.04911 0.04956
Jan-13-2022 0.04967 0.04911 0.04956
Jan-12-2022 0.04967 0.04911 0.04956
Jan-11-2022 0.04967 0.04911 0.04956
Jan-10-2022 0.04967 0.04911 0.04956
Jan-07-2022 0.04967 0.04911 0.04956
Jan-06-2022 0.04967 0.04911 0.04956
Jan-05-2022 0.04967 0.04911 0.04956
Jan-04-2022 0.04967 0.04911 0.04956
Jan-03-2022 0.04967 0.04911 0.04956
Dec-31-2021 0.04967 0.04911 0.04956
Dec-30-2021 0.04967 0.04911 0.04956
Dec-29-2021 0.04967 0.04911 0.04956
Dec-28-2021 0.04967 0.04911 0.04956
Dec-27-2021 0.04967 0.04911 0.04956
Dec-23-2021 0.04967 0.04911 0.04956
Dec-22-2021 0.04967 0.04911 0.04956
Dec-21-2021 0.04967 0.04911 0.04956
Dec-20-2021 0.05000 0.04923 0.04962
Dec-17-2021 0.05000 0.04923 0.04962
Dec-16-2021 0.05000 0.04923 0.04962
Dec-15-2021 0.05000 0.04923 0.04962
Dec-14-2021 0.05000 0.04923 0.04962
Dec-13-2021 0.05000 0.04923 0.04939
Dec-10-2021 0.05000 0.04923 0.04873
Dec-09-2021 0.05000 0.04923 0.04851
Dec-08-2021 0.05000 0.04923 0.04828
Dec-07-2021 0.05000 0.04923 0.04806
Dec-06-2021 0.05000 0.04923 0.04784
Dec-03-2021 0.05000 0.04923 0.04717
Dec-02-2021 0.05000 0.04923 0.04695
Dec-01-2021 0.05000 0.04923 0.04673
Nov-30-2021 0.05000 0.04923 0.04651
Nov-29-2021 0.05000 0.04923 0.04628
Nov-26-2021 0.05000 0.04923 0.04562

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

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