11th District Rate Edges Up to 4.852%

The 11th District cost of funds--the interest rate to which many adjustable-rate home mortgage loans in Southern California are tied--edged higher to 4.852% in December, up from 4.773% in November, the Federal Home Loan Bank of San Francisco reported. It was the rate’s fifth straight monthly increase. The rate, which tends to lag changes in market interest rates by several months, stood at 4.963% a year earlier and dipped to as low as 4.480% in May before climbing again. The rate measures the average cost of funds for the thrifts in the federal bank system’s 11th District, which includes California, Arizona and Nevada.