Key Mortgage Rate Stays at 4 1/2-Year Low

The 11th District cost of funds--the rate to which many adjustable-rate home mortgage loans are tied--slipped to 4.49% in April from 4.519% in March, the Federal Home Loan Bank of San Francisco reported. That kept the rate at its lowest level since November 1994, when it stood at 4.367%. The rate, which tends to lag changes in market interest rates by several months, was 4.903% a year ago. 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.