11th District Rates Rise to 5.456% in July

The 11th District cost of funds--the rate to which many adjustable-rate home mortgage loans are tied--rose again in July to 5.456% from 5.357% in June, 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 steadily for more than a year and now stands at its highest level since March 1992, when it was 5.611%. The rate, which stood at 4.508% in July 1999, measures the average cost of funds for savings institutions in the bank’s 11th District, which includes California, Arizona and Nevada.