COFI Falls to 1.6% in June

The San Francisco Federal Home Loan Bank Cost of Funds Index for June 2009 is 1.599% — a decline of 23 basis points from May's 1.832%. This is the second large abrupt change in direction in COFI in the past two months, with the index reporting its second biggest rise ever between April and May. In calculating the June index, the FHLBank used average total funds of $93.5 billion and total interest expense of $124.5 million. For comparative purposes, the Freddie Mac Primary Mortgage Market Survey for the monthly average commitment rate on one-year adjustable rate mortgage increased 18 basis points between May and June to 4.93%. The monthly average commitment rate for the 30-year fixed rate mortgage is 5.42% in June, up 56 basis points over May.