A month-over-month increase was recorded for the 11th District Cost of Funds Index — the fifth month in a row that it has escalated.
COFI, which is utilized to determine rate changes on some adjustable-rate mortgages, was 0.690 percent in April.
The index increased from one month prior, when it came in at 0.678 percent.
The Federal Home Loan Bank of San Francisco reported the index, which is based on interest expenses at member institutions with headquarters in Arizona, California and Nevada.
COFI was also higher than
0.680 percent in the same month last year.
The FHLB said that
average total funds used in the latest calculation were $18.7 billion.
A more prominent ARM index, the yield on the one-year Treasury note, was
0.56 percent at the end of April 2016, according the Department of the Treasury.
The one-year yield declined from 0.59 percent at the end of March.
But
the one-year Treasury yield has since risen, ascending to 0.68 percent as of the end of May.
ARM share in the U.S. Mortgage Market Index report from OpenClose and Mortgage Daily for the week ended May 27 was 11.5 percent.
