|After reaching the lowest level on record, the Cost of Funds Index set another record.
The Federal Home Loan Bank of San Francisco today reported the April index at 1.380%, down from 1.627% in March -- which was already the lowest level on record.
In April 2008, COFI stood at 3.111%.
The FHLB determines the index based on interest expenses for its member institutions based in Arizona, California and Nevada. Last month, $97.4 billion in average total funds was used in the calculation.
Another index used on adjustable-rate mortgages is the yield on the one-year Treasury bill, which ended April at 0.49%, down from 0.57% at the end of March, according to data from the U.S. Department of the Treasury. The one-year yield closed today at 0.47%.
The six-month London Interbank Offered Rate was 1.58% at the end of April, falling from 1.77% at the end of March, Bankrate.com reported. Yesterday, LIBOR was 1.22%.
ARM share stood at 2.6% in the Mortgage Bankers Association Weekly Mortgage Applications Survey for the week ending May 22.