The Eleventh Federal Home Loan District Cost of Funds Index fell by nearly two basis points in February, to 1.469%. This is the 11th consecutive month of decline in the index, which has been used by some West Coast lenders to set adjustable-rate mortgages.
Because of the way it is calculated by the Federal Home Loan Bank of San Francisco, the index typically lags other rate changes by between three and six months.
In comparison, the monthly data for the one-year Treasury Constant Maturity rate topped out at 0.45% in April 2010, according to data from the Federal Reserve Bank of St. Louis.
This rate bottomed out in October at 0.23%, was up two BPs in November and another four BPs in December, fell by two BPs again in January before rising to 0.29% for February.
The monthly data for the 30-year Treasury Constant Maturity rate has moved more in a V shape since reaching its peak last April at 4.69%. It declined over the next five months, bottoming out in September at 3.77%. This rate has been rising ever since and for February it was at 4.65%.
For February, FHLB-SF used total average funds of $35.3 billion and total interest expense of $43.2 million in making its COFI calculation.
