11th District Cost of Funds Climbs Again

The 11th District cost of funds--the rate to which many adjustable-rate home mortgage loans are tied--continued its ascent in October, rising from 5.548% in September to 5.589%, the Federal Home Loan Bank of San Francisco reported. The rate, which tends to lag changes in market interest rates by several months, has been rising for a year and now stands at its highest level since early 1992. The rate, which stood at 4.666% in October 1999, measures the average cost of funds for the savings institutions in the bank’s 11th District, which includes California, Arizona and Nevada.