11th District Cost of Funds Drops

The 11th District cost of funds--the rate to which many adjustable-rate mortgages are tied--fell in January to 4.60% from 4.65% in December, the Federal Home Loan Board of San Francisco said. The rate, which tends to lag changes in market interest rates by several months, stood at 4.98% a year earlier. The rate measures the average cost of funds for thrifts and other financial institutions in the federal bank system’s 11th District, which covers California, Arizona and Nevada.