BANKING
From Times Staff and Wire Reports
ARM Indicator Drops Again: The 11th District cost of funds index, one of the main indexes used by lenders in setting adjustable-rate mortgages, continued dropping in May, falling to 5.290% from 5.427% in April. The index measures what thrifts in California, Arizona and Nevada pay for mortgage money. Lenders typically set ARM rates 2 to 2.5 percentage points higher.
