30-Day Average SOFR
This dataset tracks 30-day average sofr over time.
Latest Value
4.34
Year-over-Year Change
-0.22%
Date Range
5/2/2018 - 8/11/2025
Summary
The 30-Day Average SOFR represents the 30-day moving average of the Secured Overnight Financing Rate, a key benchmark interest rate used in financial markets. This metric provides a smoothed view of short-term borrowing costs and serves as an important reference for lending and derivative contracts.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
SOFR is a broad measure of the cost of borrowing cash overnight, collateralized by Treasury securities in the repurchase market. Economists and financial professionals use this trend to understand short-term lending dynamics and as a potential replacement for the previously used LIBOR benchmark.
Methodology
The 30-Day Average SOFR is calculated by taking the arithmetic mean of daily SOFR rates over a 30-calendar day period.
Historical Context
This metric is critically used in pricing financial instruments, setting adjustable-rate loans, and informing monetary policy decisions.
Key Facts
- Introduced as a replacement for LIBOR in 2017
- Based on actual transactions in the Treasury repo market
- Considered more robust and transparent than previous benchmarks
FAQs
Q: What makes SOFR different from LIBOR?
A: SOFR is transaction-based and reflects actual market activity, while LIBOR was based on bank submissions and prone to manipulation.
Q: How often is the 30-Day Average SOFR updated?
A: The daily SOFR rate is published each business day, with the 30-day average calculated and updated accordingly.
Q: Why do financial institutions care about SOFR?
A: SOFR provides a more reliable reference rate for pricing loans, derivatives, and other financial instruments with variable interest rates.
Q: How does SOFR impact consumer loans?
A: Many adjustable-rate mortgages and other consumer loans are now being priced using SOFR instead of the previous LIBOR benchmark.
Q: Are there limitations to using SOFR?
A: SOFR can be more volatile during market stress and lacks a forward-looking term rate, which can create challenges for some financial products.
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Citation
U.S. Federal Reserve, 30-Day Average SOFR [SOFR30DAYAVG], retrieved from FRED.
Last Checked: 8/1/2025