Some adjustable-rate borrowers got a break.
The average 11th District Cost of Funds Index was 4.392% in January, the Federal Home Loan Bank of San Francisco announced yesterday. The index was 0.004% lower than December but 1.045% higher than January 2006.
COFI reflects the cost of borrowing for 11th District member institutions which are based in Arizona, California and Nevada. Average total funds used in the latest calculation were $477.9 billion -- falling from $487.3 billion the prior month.
A competing index for adjustable-rate mortgages is the 1-year Treasury, which yielded 4.93% Tuesday, according to Federal Reserve data. The 1-year was 5.12% a month earlier.
ARMs represent 21 percent of all home loan applications, the Mortgage Bankers Association said in its weekly survey announced yesterday.