Key Mortgage Rate Again Edges Higher

The 11th District cost of funds--the rate to which many adjustable-rate home mortgage loans are tied--climbed to 4.608% in September from 4.562% in August, the Federal Home Loan Bank of San Francisco reported. It was the rate’s second straight monthly increase, though it remains near four-year lows; a year ago it stood at 4.882%. The rate, which tends to lag changes in market interest rates by several months, 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.