As other interest rates move higher, the Cost of Funds Index moved lower again and stands even closer to its record low.
As of November, COFI — which is used to determine changes to some adjustable-rate mortgages — was
0.644 percent.
The 11th District
index declined from the previous month, when it landed at 0.649 percent.
It was the second month in a row that COFI has retreated. The index fell to its lowest level on record in August, when it was 0.639 percent.
As of November 2014, COFI was
0.686 percent.
COFI is reported by the
Federal Home Loan Bank of San Francisco based on the interest expense of member banks based in Arizona, California and Nevada. November 2015’s calculation was determined based on average total funds of $17.4 billion.
A much more popular ARM index, the yield on the one-year Treasury note, finished November at 0.51 percent,
soaring from 0.34 percent at the close of October, Treasury Department data indicate.
The one-year Treasury yield surged even further as of the
end of December, to 0.65 percent.
ARMs made up
11.9 percent of all rate locks tracked in the U.S. Mortgage Market Index from OpenClose and Mortgage Daily for the week ended Dec. 25.