COFI Almost Unchanged

The Eleventh Federal Home Loan District Cost of Funds Index for September is 2.759%, virtually unchanged from August's 2.763%.The Federal Home Loan Bank of San Francisco calculates the index based on the cost of mortgage money for the member institutions; this includes what these institutions pay on deposits. According to data kept on the Federal Reserve Bank of St. Louis website, nationwide interest rates for the one-month, three-month and six-month certificates of deposit all spiked upward in March before declining in April and flattening out in May and June. Being a weighted average, COFI typically has a three-to-six month lag. What might be bad news down the road for this index is that CD interest rates increased from August to September.