As West Coast banks continue to pay lower rates on their interest expenses, some borrowers with adjustable-rate mortgages are getting a huge break.
The Cost of Funds Index was 1.452 percent in March, the Federal Home Loan Bank of San Francisco reported.
The index has been lower each month since June 2010’s 1.797 percent. It continued to descend last month — falling from 1.469 percent in February.
In March 2010, the index was 1.859 percent.
COFIÂ reflects the cost of funds for 11th District FHLB members based in Arizona, California and Nevada. The average total funds used in March’s calculation came in at $35.5 billion.
A more popular ARMÂ index, the one-year Treasury yield, climbed to 0.30 percent at the end of March from 0.25 percent on Feb. 28. The one-year yield closed at 0.22 percent today.
ARMÂ share was 10.79 percent in the Mortgage Market Index report for the week ended April 29, higher than 10.43 percent a week earlier.
