As the 10-year Treasury yield heads south, the West Coast index for adjustable-rate mortgages was up for the 14th consecutive month and one European index is at its highest level in over four years.
The 10-year Treasury note yield closed Wednesday at 4.01% -- about 33 basis points below the level a month ago. Movements in the widely watched 10-year yield often parallel those of long term mortgage rates.
But not necessarily short term mortgage rates.
The 6-month London Interbank Offered Rate, at 4.0817% in August, is at the highest level since April 2001, according to Fannie Mae, which reports the rate on the second to last business day of each month. The European-based LIBOR rose from 3.9235% the previous month and 1.9907% a year ago.
And the Cost of Funds Index, or COFI as it is widely known, was 2.757% in July, rising from 2.676% a month ago and way above 1.816% a year earlier, the Federal Home Loan Bank of San Francisco announced Wednesday.
The average total funds from used to calculate July's COFI were reportedly $544.8 billion.
The COFI reflects the interest expense of member institutions headquartered in Arizona, California and Nevada, and is reported about 30 days following the end of each month.
ARMs currently comprise less than a third of all applications.