The interest expense for savings institutions in the West fell again, leaving little room for further drops.
This week, the Federal Home Loan Bank of San Francisco released the February average COFI -- or Cost of Funds Index for 11th District Savings Institutions. According to the announcement, COFI fell to 2.257% from 2.308% the prior month.
A year ago the index, which is used in determining interest rate adjustments for many adjustable rate mortgages (ARMs), stood at 2.744%.
The Federal Home Loan Bank said average total funds used in the calculation of the index was $358.2 billion.
Last week, government sponsored housing enterprise Freddie Mac reported that the average 1-year ARM rate was 3.84%, while the underlying 1-year Treasury-Bill yield stands at 1.27%.