June was the first month in more than three years that the Monthly Treasury Average didn’t come in at its lowest level on record. It was also the first time in more than five years that the index increased.
An analysis of data released by the Federal Reserve System indicates that MTA was 0.14750 percent in June.
That was higher than during May, when MTA was 0.14667 percent.
Last month was the first time that MTA has moved higher since April 2007, when it was 5.02917 percent. The last time that the index wasn’t at a record low was March 2009, when it stood at 1.43833 percent.
In June 2011, MTA came in at 0.25167 percent.
The index is calculated using the daily average of the one-year Treasury yield for each of the past 12 months. In June, the daily average was 0.19 percent.
MTA is used to determine rate and payment adjustments on some adjustable-rate mortgages. A more commonly used ARM index is the one-year Treasury yield, which closed out June at 0.21 percent, rising from 0.18 percent at the end of May, according to data reported by the Department of the Treasury. The yield on the one-year closed at 0.21 percent today.
ARM share of new loan inquiries was 3.3 percent in the U.S. Mortgage Market Index report from Mortech Inc. and Mortgage Daily for the week ended June 29.