It’s been nearly five years since the monthly Treasury average has been this low.
Data released by the Federal Reserve today indicated that the MTA was 1.43833% during March.
The index fell from 1.51333% in February and tumbled from 3.79417 during March 2008.
The MTA has fallen each of the past 23 months. The last time it was this low was in June 2004 — when it stood at 1.38080%.
To calculate the index, the daily yield on the one-year Treasury is averaged for the given month. The daily average for March was 0.64%.
Next, the daily average for each of the 12 most recent months is averaged to determine the MTA. March’s index included daily averages for April 2008 through March 2009.
The yield on the one-year Treasury itself closed yesterday at 0.60%, fed data indicate. The one-year ended last month at 0.57%, falling from 0.72% at the end of February.
Another index used for adjustable-rate mortgages, the six-month London Interbank Offered Rate, was 1.74% last week, 1.77% at the end of March and 1.75% at the end of February, Bankrate.com reported.
ARMs accounted for just 1.5% of total 1003s tracked by the Mortgage Bankers Association in its Weekly Mortgage Applications Survey for the week ending March 27.
