Cost of Funds Index for 11th District Falls
The cost of funds index for savings institutions in the Federal Home Loan Bank’s 11th District fell to 2.210% in March, down from 2.257% in February, lowering monthly payments on adjustable-rate mortgages in California, Arizona and Nevada.
The index sets payments through May. It also is used as a base rate for West Coast mortgages and for bonds backed by those loans.
A decrease lowers monthly mortgage costs for homeowners and cuts interest income on bonds backed by mortgages pegged to the index.