The 11th district cost of funds index reversed course again and set a new record low in the process.
The COFI, as it is widely known -- fell to 1.802% in April from the previous month's 1.815%, according to the Federal Home Loan Bank of San Francisco. The latest figure is below the 23-year low record set in January. Last year at this time, this index was at 2.208%.
COFI is reported about 30 days following the end of each month and reflects deposit and financing costs during a given month by all member savings institutions headquartered in Arizona, California, and Nevada. For April, the average total funds for these institutions used in the calculation of the index was $418.5 billion, up slightly from $411.3 billion the prior month.
The 1-year Treasury-indexed adjustable-rate mortgage -- or ARM, which competes with COFI-indexed loans for ARM applicants, was at 3.87% last week, according to Freddie Mac. ARMs currently comprise over a third of all mortgage applications.