The 11th district cost of funds index edged up for the third consecutive month -- moving closer to the 2% mark.
The COFI, as it is widely known, was 1.875% in August, up from the previous month's 1.816%, the Federal Home Loan Bank of San Francisco reported. The index, however, is below that of 1.946% reported a year ago.
The average total funds used in the August calculation of the COFI was reportedly $445.5 billion.
The index is announced about 30 days following the end of each month, and reflects interest expenses during a given month by all member savings institutions headquartered in Arizona, California and Nevada.
The 1-year Treasury-indexed adjustable-rate mortgage (ARM), which competes with COFI-indexed ARMs, averaged 3.97% this week, unchanged from its level a month ago. ARMs currently account for about a third of all mortgage applications.