The Eleventh Federal Home Loan District Cost of Funds Index crept closer to the 2% mark in October, with a 4-basis-point rise.The new index reading stands at 1.960%, up from 1.931% in September, according to the Federal Home Loan Bank of San Francisco, which calculates the index based on a weighted average of the cost to its thrift members for the money used to originate mortgages. Since bottoming out in May, the index has risen at a rate of about 5 bps per month. Another increase at that rate will push the index back over 2%, a level it has not seen since July 2003, according to a chart on the FHLBank-SF website. The current index level is the highest it has been since August 2003.
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