MTA Rises to 4.5-Year High

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11 · 02 · 15

Last month, the Monthly Treasury Average moved higher, ascending to a level that has not been seen in four-and-a-half years.

MTA, which is used to determine the degree of rate changes on some adjustable-rate mortgages, was
0.25583 percent in October.

Last month’s MTA’s marked the highest point since May 2011, when the average was 0.26333 percent — a record-low at the time.

That is according to an analysis by Mortgage Daily of Federal Reserve Board data back to 1953.

MTA was up from 0.24250 percent in September 2015 and much higher than 0.11333 percent in October 2014.

The index is determined based on a daily average for the one-year Treasury note for each of the 12 most-recent months. In October, the daily average for the one-year Treasury was 0.26 percent, sharply lower than 0.37 percent the previous month.

The yield on the one-year Treasury note, itself, closed out October at 0.34 percent, a basis point higher than at the end of September, according to the Department of the Treasury.

The one-year Treasury yield surged on Monday, closing at 0.37 percent.

ARMs accounted for 9.7 percent of all rate locks in the
the U.S. Mortgage Market Index from OpenClose and Mortgage Daily for the week ended Oct. 30. ARM share deflated from 12.6 percent seven days prior.


Mortgage Daily Staff


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