The cost of funds index and the London Interbank Offered Rate fell, while the yield on the 1-year Treasury rose, according to the latest data.
COFI was 4.172% in November, the Federal Home Loan Bank of San Francisco announced Monday. The index was lower than 4.233% in October and 4.358% a year earlier.
COFI is calculated based on the interest expenses for 11th District members based in Arizona, California, and Nevada. During November, $397.4 billion in average total funds were used in the calculation.
Another index used for adjustable-rate mortgages is the 6-month LIBOR, which was 4.72% as of 12/26, according to Bankrate.com. A month earlier, the yield on the LIBOR was quoted at 4.86%.
The 1-year Treasury was 3.34% as of Dec. 31, climbing from 3.26 on Nov. 30, according to data from the U.S. Treasury.
ARMs accounted for 10.4% of loan applications tracked in the latest weekly survey from the Mortgage Bankers Association.