11th District Cost of Funds Hits 4-Year Low

The 11th District cost of funds--the rate to which many adjustable-rate home mortgage loans are tied--slipped to 4.69% in November from 4.76% in the previous month, the Federal Home Loan Bank of San Francisco reported. That pushed the rate to its lowest level since December 1994, when it stood at 4.59%. The rate, which tends to lag changes in market interest rates by several months, stood at 4.95% a year ago. The rate measures the average cost of funds for the thrifts and other financial institutions in the federal bank system’s 11th District, which covers California, Arizona and Nevada.