|For the first time in more than a year, the Cost of Funds Index moved higher.
COFI was 2.769% in September, the Federal Home Loan Bank of San Francisco announced today. The index increased from 2.693% in August.
This was the first increase in 13 months.
In September 2007, COFI stood at 4.383%.
The FHLB determines the index based on interest expenses for member institutions based in Arizona, California and Nevada. For last month's COFI calculation, average total funds of $105.4 billion were used.
Another index for adjustable-rate mortgages, the 1-year Treasury yield, ended September at 1.78%, tumbling from 2.17% at the end of August. Today, the 1-year Treasury yield closed at 1.34%.
The London Interbank Offered Rate was 3.47% at the end of September, climbing from 3.17% at the end of August. Yesterday, LIBOR was 3.48%.
ARM share was a meager 2% in the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending Oct. 24.