Despite declines in another adjustable-rate mortgage index, the Monthly Treasury Average rose to a level not seen in more than six years.
An analysis of
Federal Reserve Board data by Mortgage Daily determined the MTA to be 0.49000 percent during June.
Historical data from the Fed indicate that the index has not been as high as it was as of last month since October 2009, when it was 0.54417 percent — a record-low at the time.
MTA was 0.46750 percent in May 2016 and 0.18250 percent in June 2015.
The index is calculated based on the daily average for the one-year Treasury note for the 12 most-recent months.
The daily average for the one-year Treasury yield was 0.55 percent in June and likely to head lower in July thanks to a bond market rally that has been driving bond yields to historical lows.
In fact the one-year Treasury yield sank to 0.44 percent as of Tuesday, according to Treasury Department data.
The one-year Treasury, which, itself, is a widely used ARM index,
fell to 0.45 percent at the end of June from 0.68 percent a month earlier.
