Following brief blip in May, the Cost of Funds Index resumed its descent.
In June, COFI came in at 1.338 percent, according to monthly data released Friday from the Federal Home Loan Bank of San Francisco. The index was lower than the previous month’s 1.360 percent.
In June 2010, COFI was higher at 1.797 percent.
COFI is computed based on interest expense at 11th District FHLB members with headquarters in Arizona, California and Nevada. The latest index was calculated off of $35.8 billion in average total funds.
A more broadly used index for adjustable-rate mortgages, the yield on the one-year Treasury note, inched up to 0.19 percent at the end of June from 0.18 percent on May 31, according to data reported by the Department of the Treasury. The one-year yield finished this month at 0.20 percent.
New ARM activity jumped 19 percent this week, based on the U.S. Mortgage Market Index report from Mortech Inc. and MortgageDaily.com for the week ended July 29. ARM share was 11.01 percent, rising from 9.89 percent last week.
