SOFR Rate
The current SOFR rate is 3.8% as of 13 December 2022 from 3.05% last month. You can find the statistics, analysis of SOFR rates, SOFR futures, the SOFR forward curve and SOFR swaps by signign up free on MacroVar.
| Update: 2023-11-06 | Rate |
|---|---|
| Secured Overnight Financing Rate (SOFR) | 5.32% |
| 30-Day Average SOFR | 5.32% |
| 90-Day Average SOFR | 5.34% |
| 180-Day Average SOFR | 5.27% |
SOFR Rates Chart
What is the SOFR rate
SOFR is an overnight, nearly risk-free rate based on transactions in the U.S. general collateral repurchase (repo) markets. SOFR is published by the NY Fed and is widely anticipated to replace the USD LIBOR as the reference rate for many floating-rate loans. SOFR is the average intrest rate at which institutions can borrow US dollars overnight while posting US Treasury bonds as collateral.- SOFR is endorsed by the Fed-sponsored Alternative Reference Rates Committee (ARRC) to be used in the USD marketplace
- SOFR is published by the Federal Reserve Bank of New York in cooperation with the U.S. Office of Financial Research since April 3, 2018
- Recognized by S&P Global Ratings as an "anchor money market reference rate"
SOFR is calculated using data from the overnight repo market, where financial institutions lend and borrow cash to each other using U.S. Treasury securities as collateral. It is based on the interest rates of these transactions and is designed to be a more transparent and reliable benchmark than LIBOR.
One of the key advantages of SOFR is that it is based on actual transactions in the repo market, rather than the estimates and surveys that are used to calculate LIBOR. This makes it less susceptible to manipulation and other forms of interference, and provides a more accurate picture of the true cost of borrowing in the U.S. financial system.
SOFR is currently being used as an alternative to LIBOR in some financial contracts, and is expected to become the standard reference rate for short-term interest rates in the U.S. over the coming years. It will be used to set interest rates on a wide range of financial products, including mortgages, student loans, and corporate bonds.