11th District Cost of Funds Up Slightly

The 11th District cost of funds--the rate to which many adjustable-rate home mortgages are tied--edged slightly higher to 4.562% in August, up from 4.500% in July, the Federal Home Loan Bank of San Francisco reported. The rate has gyrated between about 4.8% and 4.5% since August 1998. The rate, which tends to lag changes in market interest rates by several months, measures the average cost of funds from thrifts and other financial institutions in the federal bank system’s 11th District, which includes California, Arizona and Nevada.