Wells Fargo COSI replaces Wachovia COSI

Wells Fargo officially replaced the Wachovia COSI (Cost of Savings Index) with a new Wells Fargo COSI.  The initial rate is 2.40% and is reflective of the November 2009 COSI.  See http://www.moneycafe.com/library/cosi.htm for more information, including charts and graphs.

This new index is based upon the interest rates paid by Wells Fargo’s banks on certificates of deposits held by individual depositors as of the last business day of each month. This index is specific to the Wells Fargo banking group and is a weighted average of the relevant deposits. The COSI is basically reflective of the rate Wells Fargo is currently paying to individuals for their CD’s, also known as personal time deposits.  We anticipate Wells Fargo will report this rate a couple of weeks after the end of the previous month.

Prior to July 2007, this index was known as the World Savings COSI.  From July 2007 to October 2009 it was known as the Wachovia COSI.

See:
http://www.moneycafe.com/library/cosi.htm

Rate Updates Today

All of the LIBOR rates are down over last month.  See links below.

The 1 Year Constant Maturity Treasury Rate (1 Year CMT) was 0.55% for April.  This brings the 12 Month Treasury Average (12 MTA) down to 1.340% nearing it’s low for the last decade.

As announced yesterday, the 11th District Cost of Funds Index (COFI) dropped again in March to 1.627%.   For comparison, the Certificates of Deposit Index (CODI) was 2.428% for March and the Wachovia Cost of Savings Index (COSI) was unchanged at 3.60% (unconfirmed number) for March.

All of our rate data, graphs and charts have been updated to reflect the new data. 

See:
http://www.moneycafe.com/library/libor.htm
http://www.moneycafe.com/library/1monthlibor.htm
http://www.moneycafe.com/library/3monthlibor.htm
http://www.moneycafe.com/library/6monthlibor.htm
http://www.moneycafe.com/library/cmt.htm
http://www.moneycafe.com/library/mta.htm
http://www.moneycafe.com/library/cofi.htm
http://www.moneycafe.com/library/codi.htm
http://www.moneycafe.com/library/cosi.htm

COFI Drops

As announced yesterday, the 11th District Cost of Funds Index (COFI) dropped significantly in February to 2.003%.  (The COFI for January was 2.455%.)   This is similar to what happened last year when there was a sizable drop from January to February.

By comparison, the Certificates of Deposit Index (CODI) was 2.572% for February, down from 2.730% in January.

The Wachovia Cost of Savings Index (COSI) was at 3.60% in February, down only from 3.69% in January.  We are still waiting for the sizable drop in this index.

All of our rate data, graphs and charts will be updated later today upon reciept of the March treasury rate data from the Federal Reserve. 

See:
http://www.moneycafe.com/library/cofi.htm
http://www.moneycafe.com/library/codi.htm
http://www.moneycafe.com/library/cosi.htm

April 1st, 2009|Mortgage Rates|

11th District Cost of Funds Index update

The 11th District Cost of Funds Index (COFI) was updated this afternoon.  The rate reported today is 2.455% and represents January’s COFI.

11th District Cost of Funds Index

Monthly LIBOR rates, the Wachovia Cost of Savings Index (COSI) and the Certificates of Deposit Index (CODI) were also upated.  The Prime Rate remains 3.25%.

See:
http://www.moneycafe.com/library/cofi.htm
http://www.moneycafe.com/library/libor.htm
http://www.moneycafe.com/library/cosi.htm
http://www.moneycafe.com/library/codi.htm
http://www.moneycafe.com/library/primerate.htm

February 27th, 2009|Mortgage Rates|

Current COSI – 3.76%

Quite a few in the MoneyCafe.com community are interested in the Wachovia Cost of Savings Index (COSI), which is an index for adjustable rate mortgages.  It’s like a broken record when reporting the COSI.  One of our users reported that 3.76% was the latest COSI.  I confirmed this number with the bank.  To paraphrase an old saying – check out the new COSI, same as the old COSI. 

While the rest of the financial world was dealing with complete instability since the middle of 2008, Wachovia maintained virtually the same cost of savings for seven straight months (June through December).  There is a flat line on the recent COSI graph.   The bank is essentially saying they paid the same for their deposits on the last day of December as they did on the last day of June.  At first glance (and second glance) this really makes you scratch your head.   Rates have been very volatile since June, but not the COSI.  Almost every bank is offering about half the interest rates they were offering last summer.   If you look at the Wachovia website, it shows much lower rates on CDs than the COSI would indicate.  On top of all that, Wachovia stopped reporting  the COSI publicly.  There has been a lot of grumbling about COSI mortgage rates not going down.  After all, the higher the reported COSI the more money Wachovia gets on it’s mortgages.  On the surface it seems like something is very wrong.  But is there funny business going on with Wachovia and the COSI?   

According to the Wachovia webite, the Cost of Savings Index (COSI) “is a unique index available through Wachovia.  COSI is based on the interest rates Wachovia pays to individuals on certificates of deposit.  The index is calculated […]

February 5th, 2009|Loans, Mortgage Rates|