The West Coast-based index for adjustable-rate mortgages hurdled over the 2% mark for the first time in fifteen months.
The Cost of Funds Index, or COFI as it widely known, jumped to 2.025% in November from the previous month's 1.960%, the Federal Home Loan Bank of San Francisco reported. The prior year, the index was at 1.821%.
The last time the COFI was above 2% was in July 2003, according to the bank.
The COFI, announced about 30 days following the end of each month, reflects interest expenses during a given month by all member savings institutions headquartered in Arizona, California and Nevada.
The average total funds used for November's calculation of the COFI was reportedly 464.3 billion.
The COFI competes for ARM loans with the 1-year Treasury-indexed ARM, which averaged of 4.19% last week. ARMs currently account for over one-third of all mortgage applications.