LIBOR spreads are again very wide, which adds pain to Option ARM mortgages, and they really don’t need any more pain.

Federal Reserve Target Rate…………. 2.00 2.00 2.25 4.25 5.25
1-Month Libor……………………………… 2.48 2.38 2.61 4.86 5.32
3-Month Libor……………………………… 2.80 2.65 2.61 4.86 5.36