11th District Funds Rate Falls in June
A Times Staff Writer
The 11th District cost of funds--the rate to which many adjustable-rate mortgages are tied--fell in June to its lowest level in more than two years, the Federal Home Loan Bank of San Francisco reported. The June rate stood at 4.498%, down from 4.745% the month before, and the lowest since 4.480% set in May 1999.
The rate tends to lag changes in market interest rates by several months, and it’s been steadily declining since late last year.
The rate, which stood at 5.357% in June 2000, measures the average cost of funds for the savings institutes in the federal bank system’s 11th District, which includes California, Arizona and Nevada.
