Definition of "Index"

  1. In real estate, the basis to set an adjustable rate mortgage, such as a 6-month certificate of deposit (CD) rate, cost of funds index, or prime rate.
  2. A statistical measure stated as percentage of a base period, For example, the Department of Commerce's Consumer Price Index (CPI) is based on 1982-1984 as 100. An index unlike an average, weighs prices by the size of the components

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