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| The Monthly Treasury Average continued to climb, while the 6-month London Interbank Offered Rate kept going downhill.
Up about 1 basis point from February, the MTA came in at 5.0267% in March, according to Federal Reserve data. A year ago, this index was 4.0108%. The MTA’s is calculated by taking the 12-month average of the 1-year Treasury bill’s monthly average, which was 4.92% in March, as well as on Monday. The MTA is used to price ARM applications, which account for one-fifth of total mortgage requests, the Mortgage Bankers Association reported. A competing index for ARMs is the 6-month LIBOR, which at 5.3212% in March was off 5 BPS from February and about 20 BPS below the level a year earlier, Fannie Mae data showed. The LIBOR has reportedly fallen for two consecutive months and is at the lowest level since last April. Another competitor, the 11th District Cost of Funds Index, reportedly decreased for the second month in a row to 4.376% in February. |
