For three months’ in a row, the 11th District Cost of Funds Index has moved higher — though it still sits at just 1 basis point more than its record low.
The index — which reflects the interest expenses of members of the Federal Home Loan Bank system that are based in Arizona, California and Nevada — was 0.963 percent in October.
A month earlier, COFI came in at 0.957 percent. It has increased each month since July, when it was 0.954 percent.
The lowest level on record for the index was achieved in May: 0.951 percent.
COFIÂ was 1.011 percent in October 2012.
The Federal Home Loan Bank of San Francisco, which reports the COFI each month, said that average total funds used in October 2013’s calculation were $32.9 billion.
While COFI is used as an index to determine interest rate changes on some adjustable-rate mortgages, a much more broadly used ARM index is the yield on the one-year Treasury note, which was 0.10 percent at the end of October, the same as at the end of September.
However, the one-year Treasury yield jumped to 0.13 percent at the end of November.
ARM share was just 3.9 percent in the U.S. Mortgage Market Index report from LoanSifter and Mortgage Daily for the week ended Nov. 29.
