The Federal Cost of Funds Index (COFI) is used as a benchmark for some types of mortgage loans and securities. It is calculated as the sum of the monthly average interest rates for marketable Treasury bills and for marketable Treasury notes, divided by two, and rounded to three decimal places.
The Federal COFI is made available by Freddie Mac on or about the 20th day of each month. Freddie Mac first began publicly providing the Federal COFI in March, 1991; values are calculated for earlier years to illustrate what the index values would have been for those periods and are provided for research purposes only. The Federal COFI is not adjusted to reflect subsequent changes in the underlying Treasury rates once the value has been posted.
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Posted on August 20, 2024; Latest data is 4.003% for July 2024.*
Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac’s economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac’s business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution. Alteration of this document or its content is strictly prohibited.©2024 by Freddie Mac.
FAQs
It is calculated as the sum of the monthly average interest rates for marketable Treasury bills and for marketable Treasury notes, divided by two, and rounded to three decimal places. The Federal COFI is made available by Freddie Mac on or about the 20th day of each month.
What is the current fed cost of funds? ›
The current Fed rate is 5.25% to 5.50%.
What replaced the 11th district cost of funds? ›
The Enterprise 11th District COFI Replacement Index is based on the Federal Cost of Funds Index, currently published by Freddie Mac, with a spread adjustment and a one-year transition period. Who should use this index? Servicers and borrowers of Single-Family COFI-indexed ARMs.
What replaced COFI? ›
The Enterprise COFI Replacement will be comprised of the existing Freddie Mac Federal Cost of Funds Index (Federal COFI) and a spread adjustment (Spread Adjustment).
What is the cof rate today? ›
Wealth Lending
| CURRENCY | COST OF FUNDS (COF) % |
|---|
| SGD | 3.53961% |
| AUD | 4.70400% |
| CHF | 1.32600% |
| CNH | 1.40000% |
6 more rowsThe cost of funds can be calculated by dividing the total interest expense by the average balance of funds over a specific period. For example, if a bank pays $50,000 in interest on deposits and has an average deposit balance of $1 million, the cost of funds would be 5%.
What is the prime interest rate today? ›
The current prime rate among major U.S. banks is 8.50%.
What is the history of COFI? ›
COFI began in 1995 with a vision of engaging parents, particularly mothers and grandmothers, as a vital voice for impacting policies that directly impact their lives, families, and communities.
What changes the federal funds rate? ›
Because the interest on reserve balances rate is an administered rate, the Fed can steer the federal funds rate by adjusting the interest on reserve balances rate. In fact, interest on reserve balances is the primary tool the Fed uses to adjust the federal funds rate.
What does Cofi do? ›
assisting consumers to make informed decisions. ensuring the services and products that the financial institution provides are likely to meet the requirements and objectives of likely consumers. not subjecting consumers to unfair pressure or tactics or undue influence.
SOFR is the main replacement for Libor in the United States.
What replaced cecl? ›
CECL replaced the previous Allowance for Loan and Lease Losses (ALLL) accounting standard. The CECL standard focuses on estimation of expected losses over the life of the loans, while the prior standard relied on incurred losses.
What is the cost of index funds? ›
Low cost: Index funds can charge very little for these benefits, with a low expense ratio. For larger funds you may pay $3 to $10 per year for every $10,000 you have invested.
What is the federal index rate? ›
Effective Federal Funds Rate is at 5.33%, compared to 5.33% the previous market day and 5.33% last year. This is higher than the long term average of 4.61%.
What is the federal cost of living index? ›
The Cost of Living in the United States
| State | Cost of Living Index |
|---|
| California | 134.5 |
| New York | 125.1 |
| Alaska | 124.4 |
| Maryland | 119.5 |
6 more rowsTo find out the cost of funds, you divide the total money paid as interest by the total amount of money the bank has over a period. This gives an average cost of funds, considering different interest rates for different sources of money. This cost can also be shown as a percentage of all the assets or debts.
