Borrowers with adjustable-rate mortgages tied to the Monthly Treasury Average saw their ARM index fall to another record-low.
At 0.25167 percent during June, MTA was the lowest it’s ever been according to an analysis of Federal Reserve data going back to 1953.
The index landed at 0.26333 percent in May and was 0.38583 percent in June 2010.
After computing a daily average for the one-year Treasury yield for each of the past 12 months, the index is determined by taking an average of all 12 months.
The one-year Treasury note itself ended June at 0.19 percent, a basis point higher than at the end of May, according to statistics reported by the Department of the Treasury. On Friday, the one-year yield was 0.20 percent.
Both the MTA and the one-year Treasury yield are used as ARM indices.
ARMs accounted for 9.79 percent of new loan inquiries base on the U.S. Mortgage Market Index report from Mortech Inc. and MortgageDaily.com for the week ended July 1, down from 10.05 percent seven days earlier.
