Cost of Funds Index Rose in April

The Eleventh Federal Home Loan District Cost of Funds Index for April was 2.515%, up over 11 basis points from March's 2.400%.This continues the measured rate that COFI has increased since it reached rock bottom in May 2004. The rise is just slightly larger than the increase in the index between January and February of this year. Since that point, when COFI was 1.708%, the index has risen a total of 81 basis points. In contrast, the Federal Open Market Committee raised the Federal Funds Rate 25 basis points on June to 1.25%, from the rock-bottom setting of 1.00% in June 2003. Since then, it has increased it seven more times at 25 basis points each and that rate is now 3.00%. COFI is traditionally a lagging indicator, usually moving three-to-six months behind other rates.