Index heads higher
By SAM GARCIA
6/3/2002

Following fifteen consecutive monthly declines, the cost of funds index (COFI) for the 11th District savings institutions rose 0.07% -- or seven basis points -- from the prior month to 2.723%. The COFI, which reflects the interest paid by savings institutions in Arizona, California, and Nevada on their various sources of mortgage money, had fallen to its lowest point in decades.

The Federal Home Loan Bank of San Francisco reports the COFI about thirty days following the end of each month. The monthly COFI reflects the actual interest expenses recognized during a given month by all savings institution members

Last week, the average one-year adjustable rate mortgage (ARM) was reported at 4.76% by Freddie Mac. The ARM is currently two percent below the average 30-year fixed rate mortgage.

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