Mortgage Daily Logo

COFI Ekes Out Another Record

Rates

The Cost of Funds Index has fallen to a new all-time low each of the last four months, though the degree of the decline is diminishing. The one-year Treasury yield tumbled to its lowest level in five months.

COFI, which is used to determine interest rate changes on many adjustable-rate mortgages originated by World Savings and now owned by Wells Fargo & Co., was 1.116 percent in June.

The index fell from 1.118 percent in May. The month-over-month decline was less than a basis point compared to a 2-basis-point drop from April to May.

A new record low has been established each month for COFI since March, when the index stood at 1.163 percent, based on historical data from the Federal Home Loan Bank of San Francisco.

A year earlier, COFI worked out to 1.338 percent.

COFI reflects the interest expense of 11th District FHLB members based in Arizona, California and Nevada. Average total funds used in determining June’s index was $33 billion.

The yield on the one-year Treasury note — a much more widely used index on ARMs — was 0.21 percent as of June 29, climbing from 0.18 percent in May, according to data from the Department of the Treasury.

The one-year Treasury yield fell to 0.16 percent as of the end of July — it’s lowest level since Feb. 13, when it yielded 0.15 percent.

ARMs accounted for 2.9 percent of all loan pricing inquiries in the U.S. Mortgage Market Index from Mortech Inc. and Mortgage Daily for the week ended July 27, weakening from 3.2 percent in the report from seven days earlier.

Related Posts

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Up 92 BPS From Year Ago

Over the past year, weekly fixed interest rates on single-family loans have soared 92 basis points. But little change was reported from last week, and more of the same is expected. On conventional loans utilized to finance a home purchase with amounts up to the...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rate Forecasts Have Little Change Ahead

Thirty-year mortgage rates moved lower this past week and this past month. Short- and long-term forecasts have little movement ahead for mortgage rates. Ellie Mae Inc.'s Origination Insight Report | September 2018 indicated that average 30-year note rates on...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Soar, Could Sink in Next Report

An expected surge in mortgage rates came to fruition this week. The latest forecast has fixed rates tumbling in next week's report. A new index for adjustable-rate mortgages moved lower. A stunning 19-basis-point surge from the preceding week left average 30-year...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Dip, But Likely to Skyrocket

Mortgage rates retreated a modest amount just one week after climbing to a seven-year high. The next rate report, however, is likely to reflect significant escalation. Prospective 30-year borrowers using the LendingTree network during September were offered an average...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Little Changed, More of Same Ahead

Over the past week, there was little change in interest rates on home loans. During the next week, more of the same is likely. Recently rising rates have helped the Federal Home Loan Banks' earnings. Conventional mortgages with conforming loan amounts used to finance...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam