The Federal Reserve’s retreat from tapering its bond buying sent Treasury yields lower last month and drove the Monthly Treasury Average to a new all-time low.
MTA, which is used to determine rate changes on some adjustable-rate mortgages, established a record low in April 2012 when it fell to 0.14667 percent
But that changed in September, when the index fell to a new low based on Fed data back to 1953.
MTA was an all-time low of 0.14333 percent last month.
The index was 0.14917 percent in August and 0.16000 a year earlier.
MTA represents the daily average for the one-year Treasury yield averaged over the previous 12 months. In September, the daily average for the one-year Treasury yield was 0.11 percent.
The yield on the one-year Treasury note, itself, is a much more widely used ARM index. The one-year yield fell from 0.13 percent at the end of August to 0.10 percent in September and closed at 0.12 percent Monday, according to Treasury Department data.
ARM share fell to 9.8 percent in the U.S. Mortgage Market Index report from LoanSifter and Mortgage Daily for the week ended Oct. 4 from 10.6 percent the previous week.
