The cost of funds index continued its unrelenting ascent.
The weighted average 11th District index, or COFI as it is widely known, jumped 10 basis points from the prior month to 2.972% in September, according to the Federal Home Loan Bank of San Francisco. The index, which is reported about 30 days following the end of each month, was 1.931% in September 2004.
The last time COFI was this high was December 2001.
COFI is calculated using the actual interest expenses for member institutions headquartered in Arizona, California, and Nevada. The latest reading was based on $559 billion average total funds.
A more popular index for adjustable rate loans, the 1-year Treasury, was 4.26% as of Thursday, according to the Federal Reserve.
The 6-month LIBOR increased to 4.4467% in October from the prior month's 4.2154%.