11th District Cost of Funds Index (COFI)
Contents
Decoding the 11th District Cost of Funds Index (COFI): What You Need to Know
Unlock the intricacies of the 11th District Cost of Funds Index (COFI), a vital metric used by mortgage lenders in the western United States. Gain insights into its computation, significance, and impact on adjustable rate mortgages (ARMs).
Unraveling the 11th District COFI
Delve into the details of the 11th District COFI, a monthly average of interest rates paid on checking and savings accounts in Arizona, California, and Nevada. Explore its role as a key benchmark for ARM interest rate adjustments since its inception in 1981.
Understanding COFI Dynamics
Gain an understanding of the factors influencing the 11th District COFI, including its weighted average calculation and its status as a lagging indicator of market interest rates. Discover how COFI impacts mortgage rates and borrower negotiations.
Regional Use and Comparison
Explore the regional significance of COFI, primarily in the western U.S., contrasted with the 1-year Treasury index favored in the eastern region. Learn how financial institutions utilize COFI data for decision-making and risk assessment.
Analyzing Recent Trends
Stay informed about the latest COFI updates and trends, including recent announcements from the Federal Home Loan Bank of San Francisco. Understand the implications of fluctuating COFI rates on mortgage borrowers and the housing market.