| The monthly weighted average cost of funds index (COFI) for the 11th District savings institutions fell in December to 3.074%, according to the Federal Home Loan Bank of San Francisco. In November, the COFI was 3.368%.
The average COFI is announced about 30 days after the end of the month being reported. The COFI, which reflects the interest paid by savings institutions in Arizona, California, and Nevada on their various sources of mortgage money, is at its lowest point in decades. Last week, mortgage giant Freddie Mac reported in its weekly survey of 125 of thrifts, commercial banks and mortgage lending companies that the average 1-year adjustable rate mortgage (ARM) edged up slightly to 5.12%. |
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| The Mortgage Bankers Association of America reported that according to last week’s Weekly Mortgage Applications Survey of mortgage bankers, commercial banks and thrifts, ARM applications represented 16.3 percent of total applications, up from 14.6 percent the previous week. | ||||||||||||||||||||||||||
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