The West coast index for adjustable-rate mortgages reversed course yet again.
The 11th District weighted average Cost of Funds Index -- or COFI, as it is widely known -- was 1.815% in March, down from 1.841% the previous month and just slightly higher than the record low 1.811% reached in January, according to the Federal Home Loan Bank of San Francisco. Last year at this time, the index was at 2.210%.
COFI, which is reported about 30 days following the end of each month, reflects actual interest expenses recognized during a given month by all savings institution members headquartered in Arizona, California, and Nevada. In March, the average total funds from these institutions used to calculate the index were $411.3 billion, compared to $407.0 billion in February.
The 1-year Treasury-indexed adjustable-rate mortgage (ARM) rose from a 20-year low at the start of April to 3.75% at the end of the month, according to Freddie Mac last week. The 1-year Treasury competes with the COFI as the index for ARMs -- which currently account for about a third of all mortgage applications.