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Even as fixed mortgage rates head higher, one ARM index continues to fall.
According to the Federal Home Loan Bank of San Francisco, the 11th District monthly weighted average Cost of Funds Index -- or COFI -- fell for the 13th straight month to 2.113% in June. The index, which is announced about 30 days following the end of each month, was reported at 2.130% the prior month. A year ago, the COFI was reported at 73 basis points higher.
The index reflects the actual interest expenses recognized during a given month by all savings institution members headquartered in Arizona, California, and Nevada. For June, the average total funds for these institutions used in the calculation of COFI was $372.7 billion.
Freddie Mac reported this week that the average one-year adjustable rate mortgage, or ARM, was 3.68%. The index for the one-year ARM is the 1-year Treasury.
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