For the second month in a row, an increase has been recorded for the Cost of Funds Index. A more widely used index, however, was down.
COFI, which is utilized to determine rate and payment changes on some adjustable-rate mortgages, was 0.664 percent in January.
The index was up from 0.655 percent in December.
It was the second consecutive rise for COFI,
which now stands at its highest level since May 2015 — when it was reported to be 0.687 percent.
COFI, which is reported by the Federal Home Loan Bank of San Francisco based on interest expenses at member banks, was 0.698 percent as of January 2015.
Average total funds used in January’s calculation were $17.6 billion.
The yield on the one-year Treasury — a much more widely used ARM index —
fell from 0.65 percent in December 2015 to 0.47 percent at the end of January, according to Treasury Department data.
The one-year yield closed at 0.62 percent as of Thursday.
ARMs accounted for 9.9 percent of all rate locks tracked in the U.S. Mortgage Market Index report from OpenClose and Mortgage Daily for the week ended Feb. 26.
