Although mortgage rates are rising, the Monthly Treasury Average is falling and will likely continue lower.
According on an analysis of data reported by the Federal Reserve, the MTA was 0.35333 percent last month. It’s the lowest level on record for the index based on data back to 1953.
The index fell from 0.37000 percent in July and 0.75750 percent in August 2009.
The MTA is calculated by averaging 12 months of daily averages for the one-year Treasury. The daily average during August was 0.26 percent.
By the looks of the latest data, it appears that the MTA will not be rising any time soon.
The index is used to determine how much interest rates on related adjustable-rate mortgages will change.
Another ARM index, the yield on the one-year Treasury, finished August at 0.25 percent, falling from 0.29 percent at the end of July. The one-year yield closed at 0.26 percent today.
