For the umpteenth time, the Monthly Treasury Average reach the lowest level on record.
Following a record-low 0.38583 percent reached in June, the MTA again set a new record last month:Â 0.37000 percent. The rate was calculated using the daily average of the one-year Treasury yield for each of the past 12 months.
The index was 0.90083 percent in July 2009, when it first fell to a record low based on data reported by the Federal Reserve since 1953. A new record has been established each month since.
More records are likely to occur in the months ahead.
The MTA is used as an index for adjustable-rate mortgages — as is the one-year Treasury yield, which fell to 0.29 percent at the end of July from 0.32 percent at the end of June. The one-year yield closed at 0.28 percent today.
The six-month London Interbank Offered Rate ended July at 0.69 percent, falling from 0.75 percent at the end of June, Bankrate.com reported. LIBORÂ was 0.65 percent today.
ARMs accounted for 5.4 percent of applications in the Mortgage Bankers Association’s latest weekly survey released today.
