COFI Heads Lower Again

Decades-low index now at 2.375%
By SAM GARCIA
2/3/2003

The cost of funds for west-coast financial institutions fell again, bringing a popular mortgage index down to its lowest point in decades -- again.

The Federal Home Loan Bank of San Francisco reported the monthly weighted average cost of funds index (COFI) for 11th District Savings Institutions fell to 2.375%. The 11th District includes commercial banks, savings institutions, credit unions, and thrift and loan companies headquartered in Arizona, California, and Nevada.

The prior month, COFI was reported at 2.537%, and the prior year it was 3.074%.

Last week, mortgage behemoth Freddie Mac reported that the average one-year adjustable rate mortgage (ARM) fell to 3.89 percent, the lowest the it has been since Freddie began tracking it in 1984. The Mortgage Bankers Association of America said in its most recent weekly mortgage activity survey that ARM applications represented 13.2% of total applications.

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