A minuscule monthly decline in the Cost of Funds Index during the final month of last year left it at the second-lowest level on record.
During the month of December, COFI worked out to 0.599 percent — the second-lowest level on record based on data back to 1981.
COFI, which is utilized as an index for some legacy adjustable-rate mortgages, eased ever so slightly from 0.603 percent in November.
In the final month of 2015, COFI was 0.655 percent.
The index was reported Tuesday by the Federal Home Loan Bank of San Francisco. It was based on interest expense of FHLB members with headquarters in Arizona, California and Nevada.
December 2016’s COFI was calculated based on $15.4 billion in average total funds.
The yield on the one-year Treasury note, which is a far more widely used ARM index,
finished last year at 0.85 percent, climbing from 0.80 percent at the end of November, according to Treasury Department data.
The one-year Treasury yield
ended January 2017 at 0.84 percent.
ARM share was 8.5 percent in the
U.S Mortgage Market Index report from OpenClose and Mortgage Daily in the week ended Jan. 27.
