Steady Rise for MTA

The MTA was 4.983% in January, edging up about 5 basis points from December, according to Federal Reserve data. In January 2005, this index for adjustable-rate mortgages was at about 3.751%.

The MTA reflects the 12-month average of the 1-year Treasury bill’s monthly average, which in January moved up from the prior month to 5.06% and on Tuesday was at 5.07%.

Two other indexes used to price ARMs, the Cost of Funds Index and the 6-month London Interbank Offered Rate, also had monthly increases, to 4.396% in December and 5.4014% in January, respectively.

ARMs account for about 22% of all mortgage applications, the Mortgage Bankers Association reported today.