Key Mortgage Rate Climbs For Third Month

The 11th District cost of funds--the rate to which many Southern California adjustable-rate home mortgage loans are tied--climbed to 4.67% in October from 4.61% in September, the Federal Home Loan Bank of San Francisco reported. It was the rate’s third straight monthly increase, although the rate remains near four-year lows; a year ago, it stood at 4.76%. 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.