The FHLBB said the cost of funds fell in April.

The Federal Home Loan Bank of San Francisco reported that its monthly cost of funds index for April declined to 9.872% from 9.976% in March. Changes in interest rates on adjustable-rate mortgage loans offered by many savings institutions and commercial banks are tied to changes in the index. The cost of funds index reflects the interest rates paid by savings institutions in Arizona, California and Nevada on their various sources of mortgage money.