ARM-tied Libors generally use 3-month or 12-month Libor rates. They have not changed. And that is ONLY because the don't fluctuate daily. The 12-month Libor rate is released, I believe, once per month (the second business day of each month??)
If the daily Libor does not fall rapidly, the 3 and 12 month rates WILL spike very shortly. I can't think of scenario where the daily Libor rate would run higher than the longer term rates. This spike in the overnight Libor is a big deal. I'm sure Ryan knows that.
The LIBOR did double
Today it was 5.03125% compared with 6.4375%.
For reference the Fed Funds rate is currently 2%
The advice given regarding asking your lender to allow you to switch to a 30 year fixed needs to be combined with a review of all other loan options performed by a competent mortgage broker. There could be a big difference between what your current lender offers and what is available with other alternatives in the broader market.
Given your 2 year time frame your probable refi needs to be guided by pragmatism, not faith or rumour.
A small but worth mentioning correction to one previous comment. Mortgage interest rates are not related to the 10 year Note (It is not a bond). This is a common falacy even among the pundits from the mass madia. It is not unusual to see them going in opposite directions day-to-day.
Mortgage interest rates are driven by prices on Mortgage Backed Securities. End of story.
Your question regarding one index being safer than anothe is best answered by going to http://mortgage-x.com/general/mortgage_indexes.asp. This site will give you all the historical date needed to make your own determination.
Sorry if this is a bit long winded but was not a question that would be served by a glib answer.
Bill McCord C.M.P.S.
"The Libor surge was most striking, with the overnight dollar rate more than doubling from 3.10625 percent to 6.4375 percent, a record jump. "
16 years mortgage real estate experience