To the SOFR value being used, the lender will add a markup, called a "margin", and the sum of the two becomes your loan's new interest rate. The margin called for in mortgages sold to Fannie Mae or Freddie Mac can be up to 300 basis points; as such, if the index value was 1 ...
Find average mortgage rates for the 7/6 SOFR adjustable rate mortgage from Mortgage News Daily and the Mortgage Bankers Association.
But the main point is to see if we can make an assessment as to whether thepublished historyof a Prime Dealer Survey Rate for repos in GC is a good proxy for the history of SOFR prior to 2015. From the FEDS paper: The historical primary dealer survey rate that FRBNY has released inclu...