Borrowers whose adjustable-rate mortgages utilize the Monthly Treasury Average will likely see lower rates and payments as the index descends deeper into uncharted territory.
In April, MTA was 0.14667 percent according to an analysis of Federal Reserve data. Last month’s index was — again — the lowest level on record based on Fed statistics back to 1953.
MTA fell from 0.15250 percent in March. During April 2011, the index was 0.27833 percent.
MTA is a 12-month average of the daily one-year Treasury note yield for each of the most-recent 12 months. The daily average was 0.18 percent during April, easing from 0.19 percent in March.
The yield on the one-year Treasury note — which itself serves as a widely used index on one-year ARMS — inched up to 0.20 percent as of the end of April from 0.19 percent at the end of March, according to data reported by the Department of the Treasury.
The one-year Treasury yield closed Friday at 0.18 percent.
ARM share of loan inquiries was 4.829 percent in the U.S. Mortgage Market Index from Mortech Inc. and Mortgage Daily for the week ended May 4, edging up from 4.824 percent the prior week.
