An increase in the Cost of Funds Index amounted to less than 1 basis point. But two other indices used on adjustable-rate products saw small declines during the same period.
COFI edged up to 1.797 percent in June from 1.791 percent in May, the Federal Home Loan Bank of San Francisco reported Friday.
Historical data from the government-sponsored FHLB indicate that COFI was 1.599 percent in June 2009.
The index was calculated based on data from 11th District members headquartered in Arizona, California and Nevada. Average total funds used in June’s calculation were $38 billion, the same as the month before.
COFI was a popular index for loans originated by the former World Savings. Those same loans are now owned by Wells Fargo & Co.
On many subprime adjustable-rate mortgages, the six-month London Interbank Offered Rate is the index. LIBORÂ finished June at 0.75 percent, one basis point lower than the end of May. LIBOR ended July at 0.69 percent, according to data reported by Bankrate.com.
The one-year Treasury bill yield, the index for conforming one-year ARMs, fell to 0.32 percent as of June’s end from 0.34 percent at the end of the previous month. The one-year closed out July at 0.29 percent.
ARM share of applications was 5.7 percent in the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ended July 23, rising from 5.2 percent a week earlier.
