11th District Cost of Funds Fell in January

The 11th District cost of funds--the rate to which many adjustable-rate home mortgage loans are tied--dipped in January to 5.514% from 5.617% in December, the Federal Home Loan Bank in San Francisco reported. The rate tends to lag changes in market interest rates, such as those being cut by Federal Reserve policymakers, by several months. The rate had been climbing steadily for the last year. The rate measures the average cost of funds for the savings institutions in the federal bank system’s 11th District, which includes California, Arizona and Nevada.