The Eleventh Federal Home Loan District Cost of Funds Index fell to 2.708% in October, a decline of over 5 basis points from 2.759% in September, putting COFI at its second-lowest point ever, according to data from the Federal Home Loan Bank of San Francisco.The all-time low for the index was set in March at 2.653%. Given that COFI lags other rates by three to six months, it is quite likely that a new low will be set before the index turns around and starts a sustained rise. Nationwide interest rates on certificates of deposit fell 30-40 bp in November, according to data published by the Federal Reserve Bank of St. Louis. The interest paid out by FHLB-SF members on deposits is one of the calculations in COFI.
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