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.

business

wonkblog

Success! Check your inbox for details. You might also like:

Please enter a valid email address

See all newsletters

Comments
Show Comments
Most Read Business

business

wonkblog

Success! Check your inbox for details.

See all newsletters

Next Story
Brad Plumer · July 6, 2012

To keep reading, please enter your email address.

You’ll also receive from The Washington Post:
  • A free 6-week digital subscription
  • Our daily newsletter in your inbox

Please enter a valid email address

I have read and agree to the Terms of Service and Privacy Policy.

Please indicate agreement.

Thank you.

Check your inbox. We’ve sent an email explaining how to set up an account and activate your free digital subscription.