After four consecutive months of declines, the Eleventh Federal Home Loan District Cost of Funds Index reversed course in May and increased 5 basis points.The index (as calculated by the Federal Home Loan Bank of San Francisco) stood at 4.293%, compared with 4.224% for April. COFI is calculated from the cost of mortgage lending funds (including deposits) used by thrifts in the Eleventh District. According to national data from the Federal Reserve Bank of St. Louis, the secondary-market rate for the one-month certificate of deposit, after topping out at 5.34% last July, has ranged from 5.28% to 5.31% since then. The three-month CD topped out at 5.46% last July and sunk to 5.30% in March before going back up to 5.33% by June. The sixth-month CD rate stood at 5.54% last July, hit a low of 5.28% in March, but was back up to 5.36% in June. COFI, which lags changes in other rates, hit its most recent high point in December 2006. The FHLBank can be found online at http://www.fhlbsf.com.

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