Key adjustable-rate indexes continued to climb.

In January, the 11th District weighted average cost of funds index came in at 3.347%, about five basis points above the prior month and 116 BPS higher than a year earlier, the Federal Home Loan Bank of San Francisco reported.

COFI, announced by the bank about 30 days following the end of each month, is calculated based on the interest expense of member savings institutions headquartered in Arizona, California and Nevada. The average funds used in calculating January's COFI was $583.1 billion.

The latest upturn in the COFI represents the 19th consecutive month it has risen, the bank reported.

COFI competes for ARM applications, which the Mortgage Bankers Association said today account for 28% of all applications.

Another index that competes for ARMs is the 6-month London Interbank Offering Rate, which rose to 4.9907% in February from the prior month's 4.8126%, according to Fannie Mae. A year earlier, the rate was 3.1495%.

The LIBOR is at its highest since January 2001, when it was 5.361%, Fannie said.

The yield on the 1-year Treasury, a popular index for ARMs, was 4.76% Monday, according to the Federal Reserve.