The West coast index for adjustable-rate mortgages decreased for the third consecutive month, plunging to a new record low.
The cost-of-funds index, widely known as COFI, averaged 1.708% in May, falling from the previous month's record of 1.802%, the Federal Home Loan Bank of San Francisco reported. A year ago, the figure stood much higher at 2.130%.
The COFI, which is reported about 30 days following the end of each month, measures deposit and financing costs for thrifts in California, Nevada and Arizona. The average total funds used in May's calculation of the COFI was $428.3 billion, about 2% below the prior month's total.
COFI competes for ARM applicants with the 1-year Treasury-indexed ARM, which according to Freddie Mac, averaged 4.13% last week. ARMs currently comprise about a third of all mortgage applications.