COFI Under 1% in January

For the first time, the Eleventh Federal Home Loan District Cost of Funds of Index has fallen below 1%, as January’s rate was 0.962%.

December’s COFI was 1.071%, while in November the previous low was set at 1%. The 11 basis point month-to-month decline was the largest since between January and February 2010, when it declined 17 basis points.

In January 2012 the index was 1.224, its high point for the year.

COFI is a weighted average calculation of what its costs Federal Home Loan Bank of San Francisco savings institution members to originate mortgage loans.

The total average funds used to make the calculation was $34.4 billion, while the total interest expense was $27.6 million. For December, those figures were $34.9 billion and $31.1 million, respectively.