The Monthly Treasury Average fell below 0.50% for the first time ever.
During November, MTA was 0.48083%, according to data from the Federal Reserve. It was the lowest level ever for the index based on data back to 1953 that was analyzed by MortgageDaily.com.
The index was 0.54417% in October and 2.05250% in November 2008.
MTA is determined by first calculating the one-year Treasury bill’s daily average yield for each of the past 12 months, then taking a 12 month average.
In November, the daily average yield for the one-year Treasury was 0.31%. The one-year yield closed at 0.32% today.
Both the MTA and the one-year Treasury yield are used and indices for adjustable-rate mortgages. Last week, the Mortgage Bankers Association reported that ARMs accounted for 5.3% of total applications.
