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| The Monthly Treasury Average rose once again.
The MTA was 4.8267% in October, rising about 7 basis points from the prior month, Federal Reserve data showed. A year earlier, the average was at 3.3258%. The MTA, an index for pricing adjustable-rate mortgages, has uninterruptedly climbed since April 2004. The index reflects the 12-month average of the 1-year Treasury bill’s monthly average, which in October was 5.01%, or 4 BPS above the previous month’s level, according to the data. On Thursday, the 1-year Treasury yield was reported at 5.06%. A competing index for ARMs, the Cost of Funds Index, reportedly rose for the 28th consecutive month to 4.382% in September, while another, the London Interbank Offered Rate, reversed three consecutive monthly decreases by rising to 5.3898% in October. ARM applications represent about 26% of total mortgage requests, the Mortgage Bankers Association on said Wednesday. |
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Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.e-mail: MortgageWriter@aol.com |
