After falling to a new record low for three consecutive months, the 11th District Cost of Funds Index turned higher last month.
As of September, the index — which is utilized to determine rate changes on some adjustable-rate mortgages — was 0.651 percent.
That was an increase from the previous month, when COFI was 0.639 percent — an all-time low based on data back to July 1981.
In September 2014, COFI came in at 0.663 percent — which was a record low at the time.
The index was reported by the
Federal Home Loan Bank of San Francisco based on the interest expense of FHLB members based in Arizona, California and Nevada.
For
the month of September 2015, average total funds used in COFI’s calculation were $16.8 billion.
Most ARMs move with the yield on the one-year Treasury note — which, according to the Department of the Treasury, finished September at 0.33 percent.
The one-year Treasury yield
was down from 0.39 percent at the end of August.
However, the one-year yield inched up to
0.34 percent as of the close of October.
ARMs accounted for 9.7 percent of all rate locks tracked in the U.S. Mortgage Market Index from OpenClose and Mortgage Daily for the week ended on Oct. 30.
