MTA Higher Than at Any Time Since 2009

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MORTGAGE EXPERT
10 · 03 · 16

After heading north for the 23rd month in a row, the Monthly Treasury Average has now escalated to its highest reading since late in 2009.

For September, the MTA was calculated to be 0.54167 percent, according to a Mortgage Daily analysis of Federal Reserve Board data.

Based on historical data, the index stands at its highest level
since October 2009, when it was 0.54417 percent — an all-time low at the time.

The MTA has increased every month since October 2014, when it was 0.11333 percent — also a record-low at the time.

In August 2016, the MTA was 0.52333 percent, while it landed at 0.24250 percent in September 2015.

The index, which is utilized to determine rate changes on a small share of adjustable-rate mortgages, is calculated based on the daily average of the one-year Treasury yield for the most-recent 12 months.

In September 2016, the daily average was 0.59 percent.

A more widely utilized ARM index is the yield on the one-year Treasury, itself, which
finished September at 0.59 percent, slipping from 0.61 percent at the end of the previous month, according to data from the Department of the Treasury.

The one-year Treasury yield closed Monday at 0.63 percent.

ARMs accounted for 8.3 percent of all activity in the U.S. Mortgage Market Index report from OpenClose and Mortgage Daily for the week ended Sept. 30. ARM share widened from 6.0 percent the prior week.

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Mortgage Daily Staff

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