11th District Cost of Funds Falls to 3.628%

The cost of funds index for savings institutions in the 11th District fell to 3.628% in October from 3.974% in September, the Federal Home Loan Bank of San Francisco said. The rate stood at 5.589% in October 2000.

The index is used as a base rate for mortgages in Western states, including California, and for bonds backed by those loans. A decrease lowers the monthly payments of homeowners who have adjustable-rate loans and reduces the interest income on bonds backed by mortgages pegged to the index.