After a blip in July, the Cost of Funds Index resumed its descent.
COFI came in at 1.316 percent during August.
The index was down from 1.350 percent the prior month, according to the Federal Home Loan Bank of San Francisco. A year ago, COFI was 1.713 percent.
COFIÂ fell to its lowest level on record in October 2009: 1.259 percent.
The index reflects interest expenses at FHLB members based in Arizona, California and Nevada. In August, there were $35.2 billion in average total funds used in its calculation.
COFI is used as an index on adjustable-rate mortgages — many with negative amortization.
Another ARM index, the yield on the one-year Treasury, is much more widely used than COFI.
The one-year yield finished August at 0.10 percent — down by half from 0.20 percent at the end of July. The one-year yield closed out September at 0.13 percent, while today’s close was 0.12 percent.
ARM inquiries accounted for 5.48 percent of activity in the U.S. Mortgage Market Index report for the week ended Sept. 30. The index is put out by Mortech Inc. and MortgageDaily.com.
