The cost-of-funds index dipped slightly in August.
The Federal Home Loan Bank of San Francisco reported that the monthly cost-of-funds index was 9.273% last month. The index for July was 9.365%. 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.