Following a month when it fell to the lowest level ever, the 11th District Cost of Funds Index jumped to the highest level since last summer.
COFI was calculated to be 0.645 percent as of April. That was the highest elevation for the index since August 2016, when it landed at 0.703 percent.
The index ascended from 0.583 percent in March 2017 — Â the lowest level on record for COFI based on data going back to July 1981.
The Federal Home Loan Bank of San Francisco reported COFI Wednesday based on the interest expense of member banks based in Arizona, California and Nevada.
The FHLB determined the April 2017 rate based on $15.6 billion in average total funds.
COFI is used as an index on some legacy adjustable-rate mortgages, though the yield on the one-year Treasury note is more widely utilized. The one-year yield closed April at 1.07 percent, rising from 1.03 percent at the end of March, according to Treasury Department data.
The one-year Treasury yield soared to 1.17 percent at the end of May.
ARM share in the U.S. Mortgage Market Index report from Mortgage Daily and OpenClose for the week ended May 26 was 12.4 percent, widening significantly from 8.9 percent the prior week.
