Borrowers whose adjustable-rate mortgages are tied to the 11th District Cost of Funds Index again were treated to new record-low index. It was the third month in a row that the index has established a new low.
COFI was 1.118 percent in May, according to the Federal Home Loan Bank of San Francisco. Data back to July 1981 indicate that the index has never previously been this low.
A new record has been set each month since March, when COFIÂ was 1.163 percent.
In April, COFI came in at 1.140 percent — the lowest level ever at the time. The May 2011 index was 1.360 percent.
COFIÂ is derived from interest expenses at FHLB members with headquarters in Arizona, California and Nevada. May’s calculation reflected average total funds at the financial institutions of $33.7 billion.
A much more popular ARM index, the yield on the one-year Treasury note, closed out May at 0.18 percent, slightly lower than 0.20 percent at the end of April, according to data from the Department of the Treasury. The one-year Treasury yield finished June at 0.21 percent.
ARM share of total loan pricing inquiries was 3.3 percent in the U.S. Mortgage Market Index report from Mortech Inc. and Mortgage Daily for the week ended Friday.
