Index A published interest rate against which lenders
measure the difference between the current interest rate
on an adjustable rate mortgage and that earned by other investments (such as one, three, and five year U.S. Treasury security
yields, the monthly average interest rate
on loans closed by savings and loan institutions, and the monthly average
costs - of - funds incurred by savings and loans), which is then used to adjust the interest rate
on an adjustable mortgage up or down.
«Macroprudential and housing policy
measures, as well as higher longer - term borrowing
costs resulting from the projected gradual rise in global long - term
yields, are all expected to weigh
on housing expenditures.»