Western banking institutions continue to pay more for their money.
The cost of funds index increased to 4.090% in June, climbing from 3.884% the prior month, according to the Federal Home Loan Bank of San Francisco. During June 2005, the index averaged 2.676%.
The average total funds used in the calculation of the COFI, which reflects the interest expense of banks headquartered in Arizona, California and Nevada, was $601.8 billion in June, the 11th district FHLB reported.
COFI is reported about 30 days following the end of each month.
Another adjustable-rate mortgage index, the 1-year Treasury, was 5.10% as of Friday, according to data from the Federal Reserve.