Records going back more than 30 years indicate that the Cost of Funds Index has never been as low as it was in August.
COFI was 1.069 percent in August. It has never been this low based on data dating back to 1981.
COFI is determined based on interest expense at members of the 11th District Federal Home Loan Bank of San Francisco. In August, $33.3 billion in average total funds were used in COFI’s calculation.
A competing and more widely used index for adjustable-rate mortgages, the yield on the one-year Treasury note, was 0.16 percent as of Aug. 31, the same as on July 31, according to Treasury Department data. The one-year Treasury yield inched up to 0.17 percent as of the end of September.
ARM activity accounted for just 2.6 percent of all loan pricing inquiries in the U.S. Mortgage Market Index report from Mortech Inc. and Mortgage Daily for the week ended Sept. 28, slipping from 2.8 percent a week earlier.