Just one month after descending to a new all-time low, the Cost of Funds Index did it again.
For the month of July, COFI — which is used as an index on some adjustable-rate mortgages —
came in at 0.643 percent.
A Mortgage Daily analysis of historical COFI data going back to July 1981 indicates that the latest index was the lowest on record.
A month earlier, COFI was 0.659 percent — a record-low at the time.
The index stood at
0.676 percent a year earlier.
COFI is reported by the Federal Home Loan Bank of San Francisco based on
the interest expense of FHLB-member banks with headquarters in Arizona, California and Nevada.
For July 2015, average total funds used in the calculation were $16.7 billion.
A far more popular ARM index, the yield on the one-year Treasury note, closed out July at
0.33 percent, climbing from 0.28 percent at the end of June, according to data from the Department of the Treasury.
The one-year yield finished August at
The six-month London Interbank Offered Rate, which is used as an index on some subprime ARMs, was 0.47 percent as of July’s close, climbing from 0.44 percent at the end of June, Bankrate.com reported.
0.52 percent as of the end of August.
ARMs accounted for
13.6 percent of all activity in the U.S. Mortgage Market Index report from OpenClose and Mortgage Daily for the week ended Aug. 28.