Four indices for adjustable-rate mortgages — including the cost of funds index — fell last month, and one was lower this month.
The 11th District index was 1.753 percent in July, the Federal Home Loan Bank of San Francisco reported Tuesday. COFI declined from 1.797 percent in June. The index was 1.473 percent in July 2009.
COFIÂ is calculated based on interest expenses for FHLB members with headquarters in Arizona, California and Nevada.
Average total funds used in July’s index was $37.8 billion.
The Monthly Treasury Average, another ARM index, was a record-low 0.37000 percent in July, compared to 0.38583 percent in June, based on data from the Federal Reserve.
A more widely used index for adjustable-rate mortgages, the yield on the one-year Treasury, closed out July at 0.29 percent, lower than 0.32 percent at the end of June, based on data reported by the U.S. Department of the Treasury. The one-year finished August at just a quarter percent.
On subprime mortgages, the six-month London Interbank Offered Rate is a widely used index. LIBOR ended July at 0.69 percent, lower than 0.75 percent in June, Bankrate.com reported. LIBORÂ closed out August at 0.52 percent.
