Under One Roof Blog
Everything You Need To Know About Home Mortgages

Lending Rates Fall
November 3, 2008 by Tamara Sevigny, Customer Care Director

Lending rates continued to fall Monday, as the Fed and central banks around the world attempt to boost liquidity among financial institutions.The overnight Libor rate fell for the sixth-straight day to 0.39% from 0.41% on Friday, according to Dow Jones. It was overnight Libor’s lowest level since the British Bankers’ Association began calculating the rate in 1997. The 3-month Libor rate dropped to 2.86% from 3.03% on Friday. Libor, the London Interbank Offered Rate, is a daily average of what 16 different banks charge other banks to lend money in the U.K. Lending rates have been trending downward for the past several weeks. Just a month ago, 3-month Libor was over 4%, and the overnight rate was at an all-time high of 6.88%. Lower rates are a major boost for the strangled credit market, as more than $350 trillion in assets are tied to Libor. Many economists believe falling rates are a result of a number of government programs aimed at easing funding concerns for banks and encouraging lending between financial institutions. These include measures such as lowering interest rates, injecting capital into banks and providing insurance on all non-interest bearing accounts. To read more log onto: www.cnnmoney.com.

This entry was posted on Monday, November 3rd, 2008 at 12:23 pm and is filed under Mortgage Loan Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.