BANKING & FINANCE - Dec. 1, 1995

Key Mortgage Rate Climbs: The 11th District cost of funds index--the rate to which many adjustable-rate home mortgages are tied--turned back up in October, to 5.116% from 5.111% in September, the Federal Home Loan Bank of San Francisco reported. The rate, which tends to lag current market interest rates by several months, had dropped steadily from July through September after rising for 15 consecutive months. The rate measures the average cost of funds to the thrifts and other financial institutions in the bank’s 11th District, which covers California, Arizona and Nevada. Separately, 30-year, fixed-rate mortgages averaged 7.33% this week, down from 7.35% last week, according to a survey by the Federal Home Loan Mortgage Corp. The rate was the lowest since the Feb. 24, 1994, average of 7.32%.