After falling for four consecutive months to the lowest level on record, the Cost of Funds Index reversed course.
The Federal Home Loan Bank of San Francisco reported that COFI was 1.221 percent during December.
The index edged up from November, when it fell to 1.201 percent — the lowest level ever recorded based on data as far back a July 1981.
A year earlier, the 11th District index was 1.508 percent.
The FHLB calculates COFIÂ based on the interest expenses of its members based in Arizona, California and Nevada. December’s index reflected $34.5 billion in average total funds.
COFIÂ is used to determine interest-rate changes on some adjustable-rate mortgages.
Another ARMÂ index, the yield on the one-year Treasury note, closed out last year at 0.12 percent, no different than at the end of November. The one-year yield, however, inched a basis point as of the end of January.
ARMs accounted for 4.49 percent of all loan pricing inquiries in the U.S. Mortgage Market Index report from Mortech Inc. and Mortgage Daily for the week ended Jan. 27.