Two key indexes for adjustable-rate mortgages continued ascending.
The 11th district weighted average Cost of Funds Index climbed to 3.604% in February, rising for the 20th consecutive month and by about 26 basis points from January, the Federal Home Loan Bank of San Francisco reported Friday. A year ago, the index was reported at 2.317%.
COFI is reported about 30 days following the end of each month and has not been this high since October 2001, when it was 3.628%.
February's COFI reflected interest expense on average total funds of $587.1 billion from member savings institutions in Arizona, California and Nevada, the bank said.
A competing ARM index, the 6-month London Interbank Offered Rate, rose about 13 BPS to 5.1196% during March, according to Fannie Mae. A year ago, the LIBOR was 3.3876%.
The LIBOR has climbed without interruption since April 2004, when the level was reported at 1.3682%.
ARMs currently comprise 29% of all applications, the Mortgage Bankers Association said Wednesday.