Key Mortgage Rate Edges Lower Again

The 11th District cost of funds--the rate to which many adjustable-rate home mortgage loans are tied--slipped to 4.882% in September from 4.899% the previous month, its second straight monthly decline, the Federal Home Loan Bank of San Francisco reported. The rate, which tends to lag behind changes in market interest rates by several months, has been ranging between 4.8% and 5% for most of the year. It’s now at its lowest level since June, when it stood at 4.881%. The rate measures the average cost of funds for the thrifts and other financial institutions in the bank’s 11th District, which covers California, Arizona and Nevada.