MTA Continues Lower

In August, the pricing index for adjustable-rate mortgages was 4.9325 percent, down 5 basis points from July and nearly 3 BPS below the level a year earlier, according to Federal Reserve data.

The MTA is derived through the 12-month average of the 1-year Treasury bill’s monthly average, which in August was 4.47 percent. On Tuesday, the 1-year T-bill yield stood at 4.39 percent — about 37 basis points lower than a month earlier, the Fed said.

Amongst other competing indexes of the MTA is the Cost of Funds Index, which reportedly descended for the second consecutive month to 4.277 percent in July.

ARM applications comprise less than 13 percent of all home loan requests — tumbling from 15 percent a week earlier, the Mortgage Bankers Association said today.