11th District Cost of Funds Falls Slightly

The 11th District cost of funds--the rate to which many adjustable-rate mortgages are tied--edged down to 4.917% in March from 4.968% in February, the Federal Home Loan Bank in San Francisco reported. The rate, which tends to lag changes in market interest rates by several months, has gyrated between 4.7% and 5% for more than a year. The rate measures the average cost of funds for the thrifts and other financial institutions in the bank’s 11th District, which covers California, Arizona and Nevada.