It just keeps getting better for borrowers whose adjustable-rate mortgages are tied to the Cost of Funds Index. A more widely used ARM index has ended each of the past three months unchanged.
November saw COFI fall to 1.201 percent, according to monthly statistics reported by the Federal Home Loan Bank of San Francisco.
Based on data back to July 1981, the November index was the lowest ever recorded.
COFIÂ fell from 1.218 percent in October and 1.571 percent in November 2010.
COFI represents interest expense being paid by 11th District FHLB members. Average total funds used in November’s calculation were $34.9 billion, a little less than $35.2 billion a month earlier.
The performance of COFI was better than the more widely used one-year Treasury note yield.
The Department of the Treasury reported that the one-year Treasury yield ended November at 0.12 percent, the same as the end of October.
As of the end of December, the one-year yield was still sitting at 0.12 percent.
ARM inquiries accounted for 5.06 percent of all activity in the week ended Dec. 30, off from 5.33 percent a week earlier based on the U.S. Mortgage Market Index report from Mortech and Mortgage Daily.
