The Monthly Treasury Average fell to its lowest level in nearly a year and is likely to fall further this month.
In July, the MTA came in at 0.15333 percent, according to an analysis of data reported by the Department of the Treasury.
The index fell from a month earlier, when the average was 0.15917 percent.
The last time MTA was this low was in August 2012, when it also came in at 0.15333 percent.
In the same month last year, MTA was 0.14750 percent.
The index is determined by calculating a daily average for the one-year Treasury yield by month then averaging the most recent 12 months.
The one-year Treasury note yield — which, itself, is also used as an index for adjustable-rate mortgages — averaged 0.12 percent in July.
Unless the daily average soars to at least 0.19 this month — the MTA will move lower in August.
As of July 31, the one-year Treasury note yield closed at 0.11 percent, down from 0.15 percent at the end of June.
The one-year Treasury yield closed at 0.12 percent on Monday.
ARMs accounted for 9.2 percent of total activity in the U.S. Mortgage Market Index report from LoanSifter and Mortgage Daily for the week ended Aug. 2.
