Just a month after falling to the lowest level on record, the Cost of Funds Index turned higher, though just barely.
COFI was 0.784 percent during December, according to data reported Friday by the Federal Home Loan Bank of San Francisco.
A month earlier, the 11th District index had fallen to a record-low 0.783 percent.
In the same month during 2012, COFI — which is used to determine rate and payment changes on some adjustable-rate mortgages —Â was 1.071 percent.
COFIÂ represents interest expenses for FHLB-member banks with headquarters in Arizona, California and Nevada.
The December rate was determined based on average total funds of $32.9 billion.
A far more utilized ARM index is the yield on the one-year Treasury note, which was 0.13 percent at the end of December, the same as at the end of November, according to Treasury Department data.
The one-year Treasury yield fell to 0.10 percent at the end of January.
ARMs accounted for 12.7 percent of all new activity in the U.S. Mortgage Market Index from LoanSifter and Mortgage Daily for the week ended Jan. 31.
