As short-term interest rates have been climbing, the Monthly Treasury Average has ascended to its highest level since March 2011.
For the month of November, the MTA — an index used to determine rate changes on some adjustable-rate mortgages — was
0.28500 percent.
The last time that the index
was as high as it was last month was in March 2011, when it was calculated to be 0.29500 percent, based on historical data.
In October 2015, the MTA was
0.25583 percent, while it came in at 0.11417 percent in November 2014.
The index was calculated by Mortgage Daily based on the daily average of the one-year Treasury note yield for each of the most-recent 12 months as reported by the Federal Reserve Board.
For November 2015, the daily average was 0.48 percent.
Data from the Department of the Treasury indicate that the one-year Treasury yield — a much more utilized ARM index — finished November at 0.51 percent,
surging from 0.34 percent at the end of October.
ARMs accounted for 11.9 percent of all rate locks tracked in the U.S. Mortgage Market Index report from OpenClose and Mortgage Daily for the week ended Dec. 4.
