On the Monday after the Fed effectively took over Fannie Mae and Freddie Mac, interest rates plunged down by over 1/2 %. Absolutely crazy drop! But yesterday and today, credit lending between banks froze for a number of reasons and the overnight dollar LIBOR (London Interbank Offered Rate) rate screamed up. It soared 3.33 percentage points to 6.44 percent – about doubled.

Some mortgage adjustable loans are tied to the LIBOR, and there’s concern for homeowners with that type of mortgage. But 30 year fixed rates also went up by almost 1/2% yesterday as well. Hopefully, this is just a crazy market time, cooler heads will prevail, the dust will settle, and rates will settle down.