Mortgage Daily Logo
mortgage news from industry experts

COFI Sets New Record Low

Although mortgage rates have been on the rise recently, the Cost of Funds Index managed to move to its lowest level on record.

The index was 0.951 percent during May.

COFI fell from the prior month when it came in at 0.970 percent. It was also lower than the same month in 2012, when it stood at 1.118 percent — a record at the time.

In fact, the latest reading on the 11th District index fell below the all-time low of 0.962 percent established in January, according to historical data back to July 1981 from the Federal Home Loan Bank of San Francisco.

COFI is calculated based on the interest expenses of FHLB members with headquarters in Arizona, California and Nevada.

In May, $34.7 billion in average total funds were used to determine the index, inching up from $34.5 billion a month earlier.

While COFI is used to determine rate and payment adjustments on some adjustable-rate mortgages, a much more widely used index is the yield on the one-year Treasury — which rose to 0.14 percent as of the end of May from 0.11 percent at the end of April, according to Treasury Department data. The one-year yield finished June at 0.15 percent.

ARM share was 8.1 percent in the U.S. Mortgage Market Index report from LoanSifter and Mortgage Daily for the week ended June 28, jumping from 6.5 percent in the previous report.

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

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION