The Cost of Funds Index continued to break new ground, falling to the lowest level on record for the fifth consecutive month.
COFI came in at 1.094 percent in July, the lowest level on record based on data back to 1981.
In June, the index was higher at 1.116 percent, while it was 1.350 percent in July 2011.
COFIÂ is determined based on interest expense at members of the 11th District Federal Home Loan Bank of San Francisco with headquarters in Arizona, California and Nevada. July’s interest expense was calculated on $33.0 billion in average total funds.
A much more widely used index for adjustable-rate mortgages is the yield on the one-year Treasury, which finished July at 0.16 percent, tumbling from 0.21 percent at the end of June, according to data from the Department of the Treasury. The one-year yield finished August at 0.16 percent.
ARM share of loan pricing inquiries was 2.8 percent in the U.S. Mortgage Market Index report from Mortech Inc. and Mortgage Daily for the week ended Aug. 31.
