The 11th District cost of funds - the rate to which many adjustable-rate home mortgage loans are tied - slipped to 4.97 percent in February from 4.99 percent in January, the Federal Home Loan Bank of San Francisco reported.

The rate, which tends to lag changes in market interest rates by several months, has gyrated between 4.7 percent and 5 percent for more than a year now.The rate 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.