COFI Continues Climbing

1-year ARM also rises in midst of fixed rate decline
By MortgageDaily.com staff
7/1/2002

The cost of funds index (COFI) for the 11th District savings institutions rose for the second month, according to an announcement from the Federal Home Loan Bank of San Francisco (FHLB). The index, which is announced on the last business day of the following month, rose nearly five basis points (BPS) from the prior month to 2.772 percent.

The index had fallen to 2.653 percent in March, but is nearly two percent better than its year-ago level.

The monthly COFI reflects the actual interest paid by savings institutions headquartered in Arizona, California, and Nevada for their various sources of funds over a specified period of time. Checking and savings accounts are the primary source of funds for most savings institutions.

The FHLB provides answers to frequently asked COFI questions at the following web address:

http://www.fhlbsf.com/cofi/faq.asp

While fixed mortgage rates have been falling, Freddie Mac reported last week that the average one-year adjustable rate mortgage edged up one BPS to 4.61%.

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