For the second month in a row, the Cost of Funds Index has moved lower — though the drop was minimal.
As of April, the 11th District COFI was 0.680 percent, according to data from the Federal Home Loan Bank of San Francisco.
The index slipped compared to the previous month, when it was 0.687 percent. It was the second consecutive month COFI moved lower.
But the index has climbed from April 2014, when it was calculated at 0.682 percent.
COFI
is determined based on the interest expense of FHLB members based in Arizona, California and Nevada. Last month’s calculation reflected $16.0 billion in average total funds.
Interest rates on a small share of adjustable-rate mortgages change based on COFI.
A far more widely used ARM index,
the yield on the one-year Treasury, ended April at 0.24 percent, dipping from 0.26 percent at the end of March.
But the
one-year yield rebounded in May, closing out the month at 0.26 percent.
ARMs accounted for
9.0 percent of all new mortgage activity in the U.S. Mortgage Market Index report for the week ended May 29.
