The 11th District Cost of Funds Index reached its highest level in nearly three years, while the competing London Interbank Offering Rate continued climbing to a four-year high.
The weighted average COFI was 2.676% in June, marking a rise from 2.622% in the prior month and an uninterrupted climb that started a year ago when the figure was 1.758%, the Federal Home Loan Bank of San Francisco reported.
The COFI is at its highest since October 2002, according to the bank, which reports the index about 30 days following the end of each month.
The average funds used to calculate the COFI, which reflects the interest expense of member institutions headquartered in Arizona, California and Nevada, were reportedly $539.3 billion in June.
The 6-month LIBOR jumped 23 basis points during July to 3.9235%, according to Fannie Mae. The figure is way above July 2004's level of 1.9857% and hasn't been this high since May 2001.
The indexes have risen along with the 10-year Treasury yield, which late Tuesday was 4.33% -- much higher than around this time last month when it was below the 4% mark.