Following a brief respite in June, the 11th District Cost of Funds Index last month resumed its upward trajectory.
From November of last year until May 2016, COFI moved higher every month. But then it turned lower in June.
However, the relief was short lived for the index, which is used to determine rate changes to adjustable-rate mortgages.
The Federal Home Loan Bank of San Francisco reported Wednesday that COFI came in at 0.693 percent for July.
The last time COFI was that high was in February 2015, when it stood at 0.700 percent.
July 2016’s index was up from 0.690 percent a month earlier and 0.643 percent a year earlier.
The FHLB determines the index based on the interest expense at its member banks. There were $19.2 billion in average total funds used in July 2016’s calculation.
A far more common ARM index, the yield on the one-year Treasury note, closed out July at 0.50 percent,
rising from 0.45 percent at the end of June, according to Treasury Department data.
The one-year Treasury yield finished August even higher at 0.61 percent.
ARM share was 5.0 percent in the U.S. Mortgage Market Index report from OpenClose and Mortgage Daily for the week ended Aug. 26.
