Gimme Gimme Libor

The other day I posted a chart showing the extremely high percentage of adjustable rate mortgages in Ohio that are indexed to Libor. Friday, I talked to Mark Schweitzer, the Cleveland Fed economist who collected that data, who passed along more recent nationwide statistics: 73.4 percent of subprime ARMs and 43.2 percent of prime ARMs in the United States are indexed to Libor:

But, Schweitzer took pains to point out, the vast majority of mortgages aren't adjustable-rate and the vast, vast majority of mortgages are prime:

This isn't to say Libor isn't important, of course -- 1,998,590 mortgages are indexed to it. But most peoples' mortgages weren't affected by Barclays's manipulations.

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