COFI Increases For First Time in Year

For the first time since last September, there has been an increase in the Eleventh Federal Home Loan District Cost of Funds Index. The index for September is 2.769%, an increase of over seven basis points from August 2008's 2.693%. The total average funds used in the calculation was $105.4 billion and the total interest expense was $243.2 million; for August, the average total funds used in making the weighted average calculation was $375.6 billion and the total interest expense was $842.7 million. COFI is known as a lagging indicator, reflecting movement in other interest rates on a three-to-six month delay. The Freddie Mac Primary Mortgage Market Survey data for the one-year adjustable rate mortgage saw the average monthly commitment rate rise starting in February (with the exception of a dip in June) before peaking in August and declining in September.