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For United States Mortgage purposed the London InterBank Offering Rate (LIBOR) is an average of the interest rate on dollar-denominated deposits, also known as Eurodollars, traded between banks in London. The Eurodollar market is a major component of the international financial market.
London is the center of the Euromarket in terms of volume. US Mortgage lenders use Fannie Mae Guidelines in determining which rate to use. The rate actually changes daily just like any market based product and the rates posted vary depending on which national currency is used.
In order to standardize the rate for practical mortgage purposes Fannie Mae follows this formula: LIBOR (London Interbank Offered Rate) rates are calculated from data available at 11:00 AM (London Time) on the second to last business day of each month. You can study the variations in rates if you compare the Historic BBA Libor rates and ARM Index Values -- Fannie Mae LIBOR.
Six Month LIBOR Rate History: For Historical Reference Only: Accuracy of our information is not guaranteed. Some rates are rounded, or averaged, or may contain typographical errors. We have no control or responsibility for this information, make no representation, warranty or guarantee with respect to its accuracy, and expressly disclaim any liability in connection with its use. If you find a typographical error in the rate table let us know. | 
