After 36 consecutive months of rising, the Monthly Treasury Average has taken a breather.
The MTA was 5.0217% in May, off from 5.0292% in April, Federal Reserve data showed. In May of last year, this index for adjustable-rate mortgages was at 4.2817%.
The monthly decline was barely noticeable but it was the first time the MTA decreased in three years since starting an uninterrupted climb in May 2004, when the index was at 1.2883%.
The MTA is calculated by taking the 12-month average of the 1-year Treasury bill's monthly average, which was 4.91% in May. The 1-year T-bill stood at 4.95% on Thursday, according to Fed data.
The Cost of Funds Index and the 6-month London Interbank Offered Rate, which also compete for ARM applications, were at 4.224% in April and 5.3844% in May, respectively.
ARM applications account for almost 18 percent of all mortgage requests, the Mortgage Bankers Association said Wednesday.