A minuscule decline in the 11th District Cost of Funds Index has it teetering very near its lowest level on record.
COFI, which is used as an index on a small share of adjustable-rate mortgages, was
0.649 percent as of October.
That was down
from a month earlier, when the 11th District index landed at 0.651 percent.
In fact, the October index level was within a single basis point of the record-low 0.639 percent reached in August.
COFI was previously reported at 0.671 percent for October 2014, .
COFI is published by the Federal Home Loan Bank of San Francisco. It is determined based on interest expenses at FHLB members with headquarters in Arizona, California and Nevada.
October 2015’s index was based on $17.1 billion in average total funds.
A far bigger share of ARMs utilize the yield on the one-year Treasury note as an index. The one-year yield
finished October at 0.34 percent, edging up from 0.33 percent at September’s close, according to the Department of the Treasury.
As of the end of November, the one-year Treasury yield soared to 0.51 percent.
In the U.S. Mortgage Market Report from OpenClose and Mortgage Daily for the week ended Nov. 27, ARM share was 9.3 percent.
