BANKING & FINANCE - Dec. 1, 1992

Index for Many Adjustable Loans Drops: The index for the 11th District cost of funds, one of the most widely used indexes to which lenders peg adjustable rate mortgages, continued its downward spiral, dropping to 4.597% for October. The decline means that those with adjustable loans based on the index will soon see their monthly payments drop. The index--essentially what thrifts in California, Arizona and Nevada pay for the money they lend--has been falling as interest rates have been pushed down by the Federal Reserve Board. For September, it was 4.805%.