The Monthly Treasury Average fell to its lowest level on record.
The index was 0.90083% in July, according to data reported by the Federal Reserve.
MTA was 1.05083% in June and 2.85500% in July 2008.
MTA is computed by first determining the average daily yield of the one-year Treasury bill for each of the last 12 months. The average of all 12 months is the MTA.
Based on Federal Reserve data back to 1953, MTA has never been this low.
While MTA is one index used for adjustable-rate mortgages, a more popular ARM index — the yield on the one-year Treasury bill — ended July at 0.48%, tumbling from 0.56% at the end of June. Today the one-year yield closed at 0.48%.
ARMs accounted for 5.5% of mortgage applications tracked in Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ended July 24.