The Federal Home Loan Bank of San Francisco (FHLB) announced that the monthly weighted average Cost of Funds Index (COFI) for the 11th District Savings Institutions was down 26 basis points (BPS) from the prior month in November to 3.368%. Last month, the COFI average was reported at 3.628 percent, its lowest point at least since 1970.
The FHLB announces the monthly average at the end of the following month. The monthly COFI reflects the actual interest expenses recognized during a given month by all savings institution members of the FHLB of San Francisco.
Last week, mortgage giant Freddie Mac announced that the average 1-year adjustable rate mortgage (ARM) fell 2 BPS from the prior week to 5.25%. A month ago, Freddie reported the 1-year ARM at 5.22 percent.