While the Monthly Treasury Average barely moved in April, it has risen every month for three years.
The MTA was at 5.0292% in April, slightly above March’s level of 5.0267%, according to Federal Reserve data. In April 2006, this index for adjustable-rate mortgages was at 4.1425%.
The last time the MTA reportedly decreased was in April 2004 to 1.2383%.
The MTA is derived through the 12-month average of the 1-year Treasury bill’s monthly average, which in April was 4.93%. On Monday, the 1-year T-bill was at 4.89%, the Fed reported.
In addition to the 1-year T-bill, other Indexes that compete with the MTA for ARMs include the Cost of Funds Index and the 6-month London Interbank Offered Rate, which reportedly have fluctuated in recent months but respectively averaged 4.299% in March and 5.3581% in April.
ARM requests represent less than 18% of total mortgage applications, the Mortgage Bankers Association said today.
