The West coast index for adjustable-rate mortgages increased again.
The cost of funds index, or COFI as it is widely known, averaged 1.816% in July, up from the previous month's 1.758% and marks the second consecutive month the average has increased, according to the Federal Home Loan Bank of San Francisco. A year ago, the average was 2.018%.
The COFI, announced about 30 days following the end of each month, reflects interest expenses during a given month by all member savings institutions headquartered in Arizona, California and Nevada.
The average total funds used in the July calculation of the index was reportedly $440.1 billion, about 1% above June's total.
The 1-year Treasury-indexed adjustable-rate mortgage (ARM), which competes with the COFI for ARM applications, was 4.05% last week, according to Freddie Mac. ARMs currently account for nearly one-third of all mortgage applications.