11th District Cost of Funds Index (COFI)

The 11th District Cost of Funds Index (COFI) is an index of the cost of funds for banks in the 11th Federal Reserve District. It is calculated by the Federal Reserve Bank of Chicago and is based on the average interest rates on loans that banks in the district make to their most creditworthy customers. The COFI is used as a benchmark for setting interest rates on a variety of loans, including mortgages, student loans, and credit cards.

The COFI is a useful tool for borrowers and lenders because it provides a way to compare the cost of loans from different banks. It is also a good indicator of the overall health of the economy, as it reflects the demand for loans from businesses and consumers.

The COFI is calculated using a weighted average of the interest rates on loans that banks in the 11th District make to their most creditworthy customers. The weights are based on the size of each bank's loan portfolio. The interest rates on these loans are collected from a survey of banks in the district.

The COFI is published monthly by the Federal Reserve Bank of Chicago. The most recent COFI is for the month of March 2023. The COFI was 3.50% in March 2023.

The COFI is a useful tool for borrowers and lenders, but it is important to note that it is not the only factor that lenders consider when setting interest rates. Other factors that lenders may consider include the borrower's credit score, the size of the loan, and the length of the loan term.

The COFI is a good indicator of the overall health of the economy, but it is important to note that it is not a perfect measure. The COFI does not take into account all factors that affect the cost of loans, such as the level of inflation.

Overall, the COFI is a useful tool for borrowers and lenders, but it is important to use it in conjunction with other factors when making financial decisions.