Adjustable-rate mortgage indexes increased across-the-board.
The Cost of Funds Index rose to 3.884% in May from April's level of 3.759%, the Federal Home Loan Bank of San Francisco announced. A year earlier, COFI was 2.622%.
The COFI has climbed for 24 consecutive months and is at the highest level since September 2001.
The average total funds used for June's calculation of the COFI was a reported $600 billion.
COFI is calculated by using the interest expense of member institutions headquartered in Arizona, California and Nevada. Results are reported about 30 days following the end of each month.
The 6-month London Interbank Offered Rate was at 5.6382% in June, up about 32 basis points from the preceding month and 195 BPS above the level a year prior, Fannie Mae reported.
The LIBOR has not been this high since December 2000, when it stood at 6.208%.
Another ARM index, the 1-year Treasury, was 5.21% Friday, according to the Federal Reserve. At the end of May, the 1-year stood at 5.07%.
ARMs currently comprise about 29% of 1003s, the Mortgage Bankers Association reported Wednesday.