Microscopic Drop in MTA Enough for New Record

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MORTGAGE EXPERT
8 · 04 · 14

By less than one tenth of one basis point, the Monthly Treasury Average managed to establish a new all-time low.

During the month of July, the MTA was 0.11667 percent. The index was determined utilizing data reported by the Board of Governors of the Federal Reserve System.

Based on Fed data going back to 1953, MTA has never been this low.

The index was minimally lower than a month earlier, when it came in at 0.11750 percent.

A year earlier, MTA was 0.15333 percent.

The index is calculated based on the daily average of the one-year Treasury note yield for each of the past 12 months.

Last month, the daily average for the one-year Treasury yield was 0.11 percent.

Rates and payments on some adjustable-rate mortgages change based on the MTA.

But a much more popular ARM index is the one-year Treasury yield, itself, which rose from 0.11 percent at the end of June to 0.12 percent as of July 31, according to data published by the Treasury Department.

The one-year Treasury yield closed at 0.12 percent Monday.

ARM share in the U.S. Mortgage Market Index report from LoanSifter/Optimal Blue and Mortgage Daily for the week ended Aug. 1 crept up to 10.9 percent from 10.8 percent in the previous report.

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Mortgage Daily Staff

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