The Cost of Funds Index continued to move higher.
COFI averaged 4.383% during September, according to the Federal Home Loan Bank of San Francisco today. The index, reported about 30 days following the end of each month, rose from 4.359% in August and 4.382% a year earlier.
The average was calculated by determining interest expenses for 25 member institutions based in Arizona, California and Nevada, according to FHLB data. During August, $465.5 billion average total funds were used in the computation.
Another adjustable-rate mortgage index, the 1-year Treasury, yielded 3.98% as of yesterday -- about 13 basis points lower than a month earlier, according to Federal Reserve data.
The 6-month London Interbank Offered Rate, which is also used as an ARM index, was quoted today at a 4.94% yield -- down from 5.16% reported for a month earlier, according to Bankrate.com.
The Mortgage Bankers Association reported the ARM share of loan applications at 14.7% for the week ending Oct. 26, 2007.