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.
COFIÂ 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.
