COFI Falls 13 bps

The Eleventh District Federal Home Loan Bank Cost of Funds Index for July was 2.698%, a decline of 13 basis points from June's 2.829%. COFI is computed from the actual interest expense reported for a given month by the Arizona, California, and Nevada savings institutions members of the Federal Home Loan Bank of San Francisco. Since reaching its latest peak last September, the index has declined nearly 169 basis points. To calculate July's COFI, FHLB-SF said the average total funds were $372.0 billion, while the total interest expense was $836.4 million. COFI is now at its lowest point since June 2005. For comparative purposes, the Freddie Mac Primary Mortgage Market Survey reports the monthly average rate for the one-year adjustable rate mortgage peaked at 5.71% in July 2007. One year later it is down 47% basis points but up 21 basis points since February. The same survey's monthly average commitment rate for the 30-year fixed rate loan peaked in July 2007 at 6.70%. It fell to 5.76% in January, but has rebounded to 6.43% for this July.