Just a month after falling to an all-time low, the Cost of Funds Index edged higher. A competing index, however, has since move significantly lower.
The 11th District COFI was 0.954 percent in June, according to data reported by the Federal Home Loan Bank of San Francisco.
The index barely moved from the previous month, when it came in at 0.951 percent — the lowest level on record based on historical data back to July 1981.
In June 2012, COFI was 1.116 percent.
COFIÂ reflects the interest expenses of FHLB members based in Arizona, California and Nevada. June’s calculation was based on $34.9 billion in average total funds.
COFI is used as an index to determine payment and rate adjustments on some adjustable-rate mortgages.
A more widely utilized ARM index, the yield on the one-year Treasury note, rose to 0.15 percent as of the end of June from 0.14 percent at the end of May, according to data reported by the Department of the Treasury.
However, the one-year yield closed Wednesday at 0.11 percent.
ARMs accounted for 9.1 percent of total activity in the U.S. Mortgage Market Index from LoanSifter and Mortgage Daily for the week ended July 26.
