COFI's Ascent Continues

Published September 01, 2006, 2:00 p.m. EDT

1 Min Read

The Eleventh Federal Home Loan District Cost of Funds Index stood at 4.177 in July, an increase of nearly 9 basis points from 4.090 in June, according to the Federal Home Loan Bank of San Francisco.COFI is a weighted average of what it costs thrifts in California, Arizona, and Nevada to obtain money to originate mortgages, and changes in interest rates on adjustable-rate mortgage offered by many financial institutions are linked to the index. Although the Federal Reserve Board has at least temporarily stopped raising its target federal funds rate (the rate banks charge each other for overnight loans), COFI may continue to rise because it lags movements in other rates by three to six months. The FHLBank can be found online at http://www.fhlbsf.com.

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