The record low that was established in February for the Cost of Funds Index has, yet again, been broken.
In March, COFI landed at 0.701 percent, the Federal Home Loan Bank of San Francisco reported Wednesday.
That was a smidgen less than the 0.709 percent rate in effect as of February, according to previously reported data.
The improvement was even greater compared to March 2013, when COFI was 0.967 percent.
Based on FHLB data going back to July 1981, the index has never been this low.
COFI is calculated based on the interest expense of FHLB members based in Arizona California and Nevada.
The latest index level was calculated using $14.1 billion in average total funds.
While COFI is used as an index on some adjustable-rate mortgages, a more widely used ARM index is the yield on the one-year Treasury note, which rose to 0.13 percent at the end of March from 0.12 percent at the end of February, the Department of the Treasury reported.
The one-year Treasury yield closed at 0.11 percent at the end of April.
In the U.S. Mortgage Market Index from LoanSifter and Mortgage Daily for the week ended April 25, ARMs accounted for 13.1 percent of all activity.
