The Eleventh Federal Home Loan District Cost of Funds Index declined by eight basis points between October and November, resuming its downward movement after one month where there was virtually no change.
For November, the index is 1.571%, compared with October's 1.654%. It was 13 months ago that the Index hit its all-time low at 1.259%, but in November 2009, zoomed above 2% as Wachovia Mortgage FSB, now a part of Wells Fargo, was removed as an eligible member of the Federal Home Loan Bank of San Francisco.
COFI is considered a lagging indicator. It is typically three-to-six months behind changes in how other rates move.
The dollar amounts used to calculate the index have been in the same range in recent months.
November had $35.6 billion of total average funds and $46.6 million of total average expense. For October, there were total average funds of $35.3 billion and total interest expense of $48.7 million; in September, the calculation used total average funds of $36 billion and total interest expense of $49.9 million.
