It was only the second during the past year that the Cost of Funds Index has risen. But a much more widely used index on adjustable-rate mortgages has fallen by half over the past month.
July’s COFI came in at 1.350 percent, the Federal Home Loan Bank of San Francisco reported Wednesday.
The index climbed from 1.338 percent the prior month, reversing a decline.
The only other time during the past year the COFIÂ increased was in May.
In July 2010, the 11th District index was 1.753 percent.
Average total funds used in the latest COFI’s calculation were $34.8 billion.
The index is determined based on the interest expense of financial institutions that are FHLB members with headquarters in Arizona, California or Nevada.
COFIÂ is used as an index to determine rate changes on ARMs. Many loans originated by World Savings and now owned by Wells Fargo &Â Co. are indexed off the COFI.
The yield on the one-year Treasury note — a much more broadly used ARM index — finished July at 0.20 percent, 1 basis point above June’s close, according to Department of the Treasury data.
But the one-year yield was a mere 0.10 percent at the end of August.
ARM share of new loan inquiries was 6.82 percent as of last Friday based on the U.S. Mortgage Market Index for the week ended Aug. 26.
