11th District Cost of Funds Is Unchanged

The 11th District cost of funds--the rate to which many adjustable-rate home mortgage loans are tied--was 4.881% in June, unchanged from the previous month, the Federal Home Loan Bank of San Francisco reported. Before June, the rate had dropped for four straight months. It remains at its lowest level since June 1997, when it was 4.853%. The rate, which tends to lag changes in market interest rates by several months, measures the average cost of funds for thrifts and other financial institutions in the bank’s 11th District, which covers California, Arizona and Nevada.