COFI's Upward March Continues

The Eleventh Federal Home Loan District Cost of Funds Index continued its upward march in April, rising 13 basis points.The index as calculated by the Federal Home Loan Bank of San Francisco stood at 3.759%, compared with 3.624% in March. When compared with that of April 2005, the index has increased by 124 bps. For comparative purposes, the average rate for the 30-year fixed-rate mortgage increased 65 bps from April 2005 to April 2006, according to monthly data from the Freddie Mac Primary Mortgage Market Survey. In May it increased another 9 bps to 6.6%. On the other hand, the average rate for the one-year adjustable-rate mortgage increased 137 bps from April 2005 to April 2006, to 5.62%. For May, that rate increased just a single basis point.