For the first time in more than three years, the Monthly Treasury Average failed to establish a new record low. It’s been more than five years since the index hasn’t fallen from the prior month.
During May, the MTA came in at 0.14667 percent, according to an analysis of data released Monday from the Board of Governors of the Federal Reserve System.
While there was no change from April, the index remains at its lowest point on record based on Fed data since 1953.
MTA had established a new record each month since March 2009, when the index stood at 1.43833 percent.
The last time the index moved higher was in April 2007, at which point it was 5.02917 percent.
In May 2011, MTA was 0.26333 percent.
The index, which is utilized to determine rate changes on adjustable-rate mortgages, is calculated based on the daily average of the one-year Treasury yield for each of the past 12 months.
The one-year Treasury, a much more widely used ARM index, was 0.18 percent as of the end of May, down from 0.20 percent at the end of April, according to data from the Department of the Treasury. The yield closed at 0.18 percent Monday.
ARM activity accounted for 4.05 percent of all pricing inquiries in the U.S. Mortgage Market Index report from Mortech Inc. and Mortgage Daily for the week ended June 1.
