It’s been 10 straight months now that the 11th District Cost of Funds Index has fallen. The last time that the index was this low was in 2009.
In April, COFI was 1.359 percent, the Federal Home Loan Bank reported. That was better than 1.452 percent in March and the lowest level for the index since it was 1.259 percent in October 2009.
During April 2010, COFI was 1.825 percent.
COFIÂ reflects interest expenses at 11th District FHLBÂ members based in Arizona, California and Nevada. April’s index was calculated off of $35.7 billion in average total funds.
While COFIÂ is used as an index for adjustable-rate mortgages, a more widely used ARMÂ index — the yield on the one-year Treasury — tumbled to 0.22 percent at the end of April from 0.30 percent at the end of March, based on data released by the Department of the Treasury. The one-year yield closed Tuesday at 0.18 percent.
New ARM inquiries have been slowing over the past three weeks, though the ARM share of new activity inched up to 10.01 percent as of Friday from 9.97 percent a week earlier, according to the U.S. Mortgage Market Index report for the week ended May 27 from Mortech Inc. and MortgageDaily.com.
