The Cost of Funds Index, which is used to determine rate and payment adjustments on some adjustable-rate mortgages, shattered its all-time low record. Again.
The 11th District COFI was reported by the Federal Home Loan Bank of San Francisco at 0.667 percent in May.
The index slipped from 0.682 percent a month earlier — the lowest it has ever been based on the oldest available statistics dating back to July 1981.
In May 2013, COFIÂ came in at 0.951 percent.
The FHLB calculates COFIÂ each month based on the interest expense of its members based in Arizona, California and Nevada.
May’s index was determined based on $14.5 billion in average total funds.
The one-year ARM, a far more widely used product, adjusts based on the one-year Treasury yield, which fell to 0.10 percent as of the end of May from 0.11 percent at the end of April, according to data reported by the Department of the Treasury.
The one-year Treasury yield, however, closed out June higher at 0.11 percent.
Pricing inquiries for ARMs accounted for 10.8 percent of all inquiries in the U.S. Mortgage Market Index report from LoanSifter/Optimal Blue and Mortgage Daily for the week ended June 27.
