“And one large class of ARM borrowers – as many as half, according to Gumbinger – may not get a break because their loans are tied to LIBOR, the London Interbank Offered Rate. And those rates have been rising: Short-term LIBOR rates are above 5.5 percent, versus 5.33 percent 30 days earlier.”
Does this mean that the Fed cut today will have minimal impact in CA where there are a lot of ARM borrowers?
