A modest month-over-month ascension was enough to push the 11th District weighted-average Cost of Funds Index to the highest level in 9 months.
As of the month of May 2017, COFI was determined to be 0.648 percent — the highest it’s been since it was 0.703 percent in August 2016.
The index was 0.645 percent in the previous month. In the same month during the previous year, COFI was calculated at
0.691 percent.
COFI was reported Friday by the Federal Home Loan Bank of San Francisco based on the actual interest expenses reported by member institutions, which are located in Arizona, California and Nevada.
Average total funds used in May 2017’s calculation was $15.7 billion.
While COFI is used as an index for some legacy adjustable-rate mortgages, a more widely utilized ARM index is the yield on the one-year Treasury note, which finished May at 1.17 percent,
surging from 1.07 percent at the end of the prior month, according to data from the Department of the Treasury. The one-year yield closed June at 1.24 percent.
ARM share in the U.S. Mortgage Market Index report from Mortgage Daily and OpenClose for the week ended June 30 was 9.3 percent, widening from 8.9 percent the previous week.
