MTA Climbs to Highest Level in Over 4 Years

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10 · 05 · 15

After ascending to a four-year high, the Monthly Treasury Average moved even higher last month. The index contrasts other adjustable-rate indices.

The MTA, which serves as an index on a small share of adjustable-rate mortgages, was 0.24250 percent in September.

A Mortgage Daily analysis of Federal Reserve Board data indicates that the index
has not been this high since July 2011, when it came in at 0.24333 percent.

In August 2015, MTA was determined to be
0.22083 percent, while it landed at 0.11500 percent in September 2014.

The index was calculated based on the daily average one-year Treasury yield for each of the most-recent 12 months. In September, the daily average for the one-year Treasury yield was 0.37 percent.

The rapidly rising MTA contrasts the Cost of Funds Index, which in August fell to 0.639 percent — the lowest point on record based on the oldest available data for COFI going back to July 1981.

A much more popular ARM index than both the MTA and COFI is the yield on the one-year Treasury note. The one-year yield
finished last month at 0.33 percent, tumbling from 0.39 percent at the end of August, according to data reported by the Department of the Treasury.

On Monday, the one-year Treasury yield closed down even further at 0.26 percent.

In the U.S. Mortgage Market Index report from OpenClose and Mortgage Daily for the week ended Oct. 2, ARM share was 12.8 percent.


Mortgage Daily Staff


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