THE ECONOMY
From Times Staff and Wire Reports
Cost of Funds Drops: The 11th District Cost of Funds Index, the index most adjustable-rate mortgages in California are tied to, dropped to 7.329% in May, compared to 7.501% in April. The index measures what thrifts in California, Nevada and Arizona pay for money. Lenders typically set rates on ARMs at 2% to 2.5% above the index level.
