Key Mortgage Rate Edges Lower in October

The 11th District cost of funds--the rate to which many adjustable rate home mortgage rates are tied--fell to 4.762% in October from 4.882% in September, the Federal Home Loan Bank of San Francisco reported. The rate has gyrated between 4.7% and 5% for more than a year. The rate, which tends to lag changes in market interest rates by several months, measures the average cost of funds for thrifts and other financial institutions in the bank’s 11th District, which covers California, Arizona and Nevada.