The 11th District cost of funds index inched up for the fifth consecutive month and is at its highest level since the summer of 2003.
The COFI, as it is widely known, was 1.960% in October, slightly above the previous month's 1.931%, according to the Federal Home Loan Bank of San Francisco. It is also above the 1.909% reported a year ago.
The index has risen each month since May and stands at its highest level since July, 2003 -- when the average was 2.018%.
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 in October used to calculate the COFI was reportedly $455.1 billion.
The 1-year Treasury-indexed adjustable-rate mortgage, which competes with COFI-indexed ARMs, averaged 4.27% last week, about one-third of a percentage point higher than a month ago. ARMs currently account for about a third of all mortgage applications.