The 11th District cost of funds--the rate to which many adjustable-rate home mortgage loans are tied--edged down to 4.500% in July from 4.504% the previous month, the Federal Home Loan Bank

of San Francisco reported. The rate has been hovering near four-year lows in recent months; a year ago it stood at 4.911%. 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. MORE TO READ