The Eleventh Federal Home Loan District Cost of Funds Index increased nearly 4 basis points in December, bringing it to 4.396%.The index is a weighted average calculation of the cost of mortgage money for thrifts that belong to the Federal Home Loan Bank of San Francisco. The rise wiped out all that was left of the rate decline that took place in October. COFI increased 110 bps for the year, the same as in 2005. COFI is now at its highest level since May 2001. For comparative purposes, the Freddie Mac Primary Mortgage Market Survey found that the monthly average commitment rate for the one-year adjustable rate mortgage peaked at 5.79% in July. Through December, the average rate declined 34 bps. However, the most recent survey, Feb. 1, has the average back up to 5.54%.

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