MTA Soars to 4-Year High 

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1 · 08 · 15

It has been four years since the Monthly Treasury Average has been as high as it came in last month.

As of August, the MTA was 0.22083 percent, according to a Mortgage Daily analysis of Federal Reserve Board data.

The last time the index was this high was in August 2011, when it landed at 0.23083 percent — though that was an all-time low at the time.

In July 2015, the MTA came in at 0.19833 percent.

A year prior the index, which is used to determine rate and payment changes on some adjustable-rate mortgages, was 0.11500 percent — a record low at the time.

The MTA is calculated based on a daily average of the one-year Treasury yield for each of the most-recent 12 months. The daily average was 0.38 percent in August.

The yield on the one-year Treasury
note, itself — which is a far more widely utilized ARM index — was 0.39 percent as of the end of last month, surging from 0.33 percent at the end of July.

As of Friday, the one-year yield settled back at 0.36 percent.

ARMs accounted for 10.8 percent of all rate locks in the U.S. Mortgage Market Index report from OpenClose and Mortgage Daily for the week ended Sept. 4.


Mortgage Daily Staff


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