Borrowers whose adjustable-rate mortgages are tied to the Monthly Treasury Average were treated to a new low for the index.
In September, the MTA fell to an all-time low. It was the same story a year ago.
Last month was no different.
The MTA declined to 0.20750 percent in October from 0.21750 percent a month earlier.
The MTA has fallen each month since April 2007, when it was 5.02917 percent. Based on an analysis of Federal Reserve statistical data back to 1953, last month’s MTA was the lowest ever.
During the same week last year, the index worked out to 0.33000 percent.
The MTA is based on a daily average of the one-year Treasury yield for each of the past 12 months. The yield on the one-year Treasury, which itself is used as an index for most one-year ARMs, slipped to 0.12 percent as of the end of October from 0.13 percent at the end of September. The one-year yield closed at 0.10 percent on Friday.
ARMs currently account for 5.78 percent of all new loan inquiries based on the U.S. Mortgage Market Index from Mortech Inc. and MortgageDaily.com for the week ended Nov. 11.