The 11th District Cost of Funds Index increased again the past month, this time rising to the highest level in two and a half years.
As of August 2016, COFI, which is utilized to determine rate changes on some adjustable-rate mortgages, was 0.703 percent.
The last time that the index was as high as it was last month was in February 2014, when it was calculated to be 0.709 percent.
That is according to historical data from the Federal Home Loan Bank of San Francisco, which released the latest index on Friday.
COFI is determined based on interest expenses at FHLB members that are based in Arizona, California and Nevada. The August 2016 index was calculated based on average total funds of $19.3 billion.
COFI was 0.693 percent in July 2016 — when it also moved up from the prior month.
In August 2015, the index was
0.639 percent.
A much more widely utilized ARM index, the yield on the one-year Treasury note,
finished August at 0.61 percent, leaping from just 0.50 percent at the end of July, according to data from the Department of the Treasury.
The one-year Treasury yield closed out September 2016 at
0.59 percent.
In the U.S. Mortgage Market Index report from OpenClose and Mortgage Daily for the week ended Sept. 30, ARM share was 8.3 percent.
