For borrowers whose adjustable-rate mortgages use the Monthly Treasury Average as the index, times have been very good. And despite record-low fixed rates, the overall share of ARM borrowers edged higher.
MTA, which fell to a record 0.40167 percent in May, sank to 0.38583 percent last month, based on data reported by the Federal Reserve. The record is based on quotes dating back to 1953.
In June 2009, MTA was 1.05083 percent.
The average daily yield for the one-year Treasury bill was 0.32 percent in June, lower than 0.37 percent in May.
Yesterday, the one-year yield closed at 0.32 percent. The one-year yield finished June at 0.32 percent, lower than 0.34 percent at the end of the previous month.
The Mortgage Bankers Association reported today that ARM share increased to 5.4 percent in the week ended July 2 from 4.7 percent seven days earlier.
The wider margin of ARM activity came despite that Freddie Mac reported the average 30-year fixed-rate mortgage at fell 11 basis points in the week ended July 1 to 4.58 percent — the lowest rate since Freddie began collecting weekly data in 1971.
