The Eleventh Federal Home Loan Cost of Funds Index stood at 3.296% in December, a 10-basis-point rise from 3.190% in November.The index is compiled by the Federal Home Loan Bank of San Francisco based on the cost of mortgage money for thrifts in Arizona, California, and Nevada and is commonly used to index adjustable-rate mortgage loans. In 2005, the index increased 110 bps. COFI has risen every month since May 2004, when it bottomed out at 1.708%. Last year was the first year since 2000 in which COFI rose in all 12 months. Ironically, COFI declined every month in 2001. The increase in 2000 was just 71 bps, while the decline the following year totaled 204 bps.
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