SAN FRANCISCO — The Federal Home Loan Bank here has reported that the weighted average cost of funds index for its member institutions was 4.745% in May, a decline from 4.946% in April.

The cost of funds index reflects the interest that savings institutions in Arizona, California, and Nevada pay on their sources of mortgage funding.

Changes in interest rates on adjustable-rate mortgages offered by many of these institutions are tied to changes in the index.

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