Just when it looked like it couldn’t fall any further — the 11th District cost of funds index set a new record.
COFI fell to 1.259% in October, the Federal Home Loan Bank of San Francisco reported today. The index had already reached a record low 1.272% in September.
During October 2008, COFI was 3.125%.
The index is determined based on the interest expenses of FHLBÂ member banks headquartered in Arizona, California and Nevada. Average total funds used in October’s calculation were $90.2 billion.
COFIÂ is used as an index for some adjustable-rate mortgages. A more widely used ARM index — the yield on the one-year Treasury bill — finished October at 0.37%, down from 0.40% at the end of September, based on government data. The one-year yield closed at 0.27% today.
The six-month London Interbank Offered Rate was 0.58% at the end of October, falling from 0.63% the previous month, according to Bankrate.com. LIBOR, which is used as an index on many subprime ARMs, fell to 0.49% Wednesday.
ARMs accounted for 5.3% of applications tracked in the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ended Nov. 20.