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| The monthly Treasury average fell for the 21st consecutive month to its lowest level since September 2004.Federal Reserve Board data released today indicate MTA was 1.63250% in January.
The index stood at 1.82167% in December and was 4.32583% during January 2008. It has fallen each month since April 2007 and hasn’t been this low since September 2004, when it stood at 1.59500%. MTA is first calculated by first averaging the daily yields on the one-year Treasury for a given month. The average daily yield during January was 0.44%. Next, January’s monthly yield was averaged with the monthly yield from each of the preceding 11 months. The average of all 12 months — including January 2009 — was the MTA for last month. Like the MTA, the 1-year Treasury yield itself is used as an index for adjustable-rate mortgages — which accounted for 2.4% of activity tracked in the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Jan. 23. The 1-year Treasury yielded 0.51% Friday, higher than 0.37% at the end of December but lower than 2.11% at the end of January 2008. |
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