Cost of Funds Index

The 11th District Cost of Funds Index (COFI) fell sharply to a record low of 5.069% in July, according to figures released Monday by the Federal Home Loan Bank of San Francisco.

The figure is important because it is one of the most popular indexes used by lenders in the state to set adjustable-rate mortgage payments.

The index measures what thrifts in California, Arizona and Nevada pay for funds collected from deposits and other mortgage money. It has set record lows monthly since 1991, following the downward trend in overall interest rates. June’s figure was 5.258% to 2.5 percentage points above the rate. July’s drop translates to savings of about $26 a month for a homeowner with a hypothetical $200,000 loan. 1992: July, 5.069% Source: Federal Home Loan Bank of San Francisco