Borrowers whose interest rates and monthly payments adjust based on movement in the Cost of Funds Index were treated to a record-low index last month.
COFI was 1.163 percent in March. The index shattered its November 2011 record of 1.201 percent and has never been this low based on available data as far back as July 1981.
The index slipped from 1.206 in February, when it fell from 1.224 percent in January.
In March 2011, COFI was 1.452 percent.
The index is announced each month by the Federal Home Loan Bank of San Francisco. COFIÂ reflects interest expenses for 11th District members based in Arizona, California and Nevada.
During March, the average total funds used in COFI’s calculation was $34.3 billion.
COFIÂ is an index used to determine rate and payment changes for adjustable-rate mortgages.
A more widely recognized ARMÂ index is the yield on the one-year Treasury note, which finished March at 0.19 percent, according to Treasury Department data. The one-year inched up from 0.18 percent at the end of February.
The one-year yield closed Monday at 0.20 percent.
ARMs accounted for 4.824 percent of all loan inquiries in the U.S. Mortgage Market Index from Mortech Inc. and Mortgage Daily for the seven days ended April 27.
