After falling to the lowest level on record, the Cost of Funds Index took a turn for the worse during the final month of last year.
The index was 1.071 percent in December. COFI increased from November, when the average fell to 1.000 percent — the lowest level on record based on data back to 1981.
COFI remains well below the 1.221 percent previously reported for December 2011.
The index is reported by the Federal Home Loan Bank of San Francisco, which adjusts COFIÂ according to changes in interest expenses at FHLBÂ members based in Arizona, California and Nevada.
In December, the 11th District index was calculated based on $34.9 billion in average total funds.
COFIÂ is used to determine rate and payment changes on some adjustable-rate mortgages.
ARM share was 3.2 percent in the U.S. Mortgage Market Index from Optimal Blue and Mortgage Daily for the week ended Jan. 25, slipping from 3.3 percent in the previous report.
