11th District Cost of Funds Edges Higher

The 11th District cost of funds--the rate to which many adjustable-rate home mortgage loans are tied--rose again in November to 5.607% from 5.589% in October, the Federal Home Loan Bank of San Francisco reported. The rate, which tends to lag behind changes in market interest rates by several months, has been climbing for more than a year and now stands at its highest level in eight years. The rate, which stood at 4.773% in November 1999, measures the average cost of funds for the savings institutions in the bank’s 11th District, which includes California, Arizona and Nevada.