The Eleventh Federal Home Loan District Cost of Funds Index stands at 3.884% for May, an increase of over 12 basis points from 3.759% in April.Several recent surveys noted that the 30-year fixed mortgage rate was at its highest point in four years. Similarly, COFI is at its highest level since October 2001, when the index stood at 3.628%. It is likely that COFI will continue to rise because the index is a weighted average of what it costs thrifts in California, Arizona, and Nevada to obtain money to originate mortgages. That includes the deposits these institutions gather. As the Federal Reserve Board continues to raise the federal funds rate (the rate banks charge each other for overnight loans), institutions have been increasing the amount they pay for deposits. On top of that, because COFI is a weighted average, it lags movements in other rates by three to six months.
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A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
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The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
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The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
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The top five producers had an average dollar volume of VA and USDA loans of more than $35 million in 2023.
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The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.
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While income decreased from the fourth quarter, it accelerated on an annual basis across NVR's building and lending units.
April 23