While most readers might be getting sick and tired of hearing about how the Monthly Treasury Average has set another record low, borrowers with adjustable-rate mortgages tied to the index can’t get enough.
An analysis of Federal Reserve data indicates that the MTA was 0.19583 percent in November.
It was the lowest level ever for the index based on data back to 1953.
MTA fell from 0.20750 percent during October. In November 2010, it stood at 0.32500 percent.
The index is determined based on the daily average for the yield on the one-year Treasury note for each of the past 12 months. The one-year yield averaged 0.11 percent during November.
The one-year Treasury yield, which itself serves as the index for the one-year ARM, finished November at 0.12 percent, unchanged from the end of October, according to data reported by the Department of the Treasury. The one-year yield also closed at 0.12 on Friday.
ARMs accounted for 5.94 percent of all new activity in the U.S. Mortgage Market Index report from Mortech Inc. and MortgageDaily.com for the week ended Dec. 2, up from 5.50 percent a week earlier.