The 11th District cost of funds index continued its upward path.
COFI, as it is widely known, has increased for eight consecutive months and stood at 2.183% in January, up from 2.118% the previous month, the Federal Home Loan Bank of San Francisco reported. A year ago, the index stood at 1.811% -- its lowest level ever.
The popular index, reported about 30 days following the end of each month, represents the actual interest expenses reported for a a given month by Arizona, California and Nevada savings institution members of the bank.
The average total funds used for January's calculation of the COFI was $509.7 billion, according to the bank.
The COFI competes for adjustable-rate mortgages with the 1-year Treasury-indexed ARM, which averaged of 4.16% last week. ARMs currently comprise just under a third of all mortgage applications.