COFI Falls Further

Index at lowest level since 1994
By MortgageDaily.com Staff
11/1/2001

The Federal Home Loan Bank of San Francisco announced that the Monthly Weighted Average Cost of Funds Index (COFI) fell to 3.974%, down 13 basis points (BPS) from August. This is the eighth consecutive month that the COFI has declined.

This is the lowest that the COFI has been since August, 1994.

COFI reflects the average interest paid by savings institutions that are member of the Federal Home Loan Bank of San Francisco for their various sources of funds over a specified period of time. Deposits in checking and savings accounts — including certificates of deposit, money market deposit accounts, transaction accounts, and passbook accounts — are the primary source of funds for most savings institutions. Other sources of funds include loans obtained through the credit programs of the (known as "advances") and money borrowed from other financial institutions.

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