For the third consecutive month, the Cost of Funds Index has risen, though not as much as a more widely used adjustable-rate mortgage index.
During the month of February, COFI was calculated to be 0.670 percent. The index inched up from one month prior, when it came in at 0.664 percent.
COFI has now established a short-term trend, with the index having moved higher each month since
November 2015, when it was 0.644 percent based on historical data.
The 11th District index was down, however, from 0.700 percent as of February 2015.
COFI is calculated and reported by the
Federal Home Loan Bank of San Francisco based on interest expense at FHLB members with headquarters in Arizona, California and Nevada.
February 2016’s index was calculated based on average total funds of $18.2 billion.
A more popular ARM index, the yield on the one-year Treasury note, closed out
February at 0.62 percent, according to Treasury Department data. The one-year surged from 0.47 percent at the end of January.
But the one-year yield has since retreated, falling to 0.59 percent as of the close of March.
In the U.S. Mortgage Market Index report from OpenClose and Mortgage Daily for the week ended March 25, ARM share was 8.6 percent.
