The West Coast-based index for adjustable-rate mortgages moved up for the fourth consecutive month.
The Cost of Funds Index, or COFI as it is widely known, was 1.931% in September, a jump from 1.875% the previous month, according to the Federal Home Loan Bank of San Francisco. The figure is also above the level reported a year ago at 1.923%.
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 average total funds used to calculate the COFI in September was reportedly $450.3 billion.
The COFI competes for ARM loans with the 1-year Treasury-indexed ARM, which averaged 3.96% last week, barely unchanged from its level a month ago. ARMs currently account for over one-third of all mortgage applications.