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| For the fifth consecutive month, the Monthly Treasury Average moved lower.
The MTA was 4.863% in September, falling 6 basis points from a month earlier and 10 BPS from a year ago, Federal Reserve data showed. The index, which competes for adjustable-rate mortgage applications — recently reported by the Mortgage Bankers Association at about 12 percent of total mortgage applications, started to decline in May and has not been this low since last October, according to the data. The MTA is calculated by taking the 12-month average of the 1-year Treasury bill’s monthly average, which was 4.14% in September. The 1-year T-bill yielded 4.11% yesterday, about 8 BPS better than a month earlier, the Fed reported. A competing ARM pricing index, the 11th District Cost of Funds Index, was reported at 4.359% in August. The 6-month London Interbank Offered Rate was 5.14% for the week ended Sept. 26, according to Bankrate.com. |
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Coco Salazar is an associate editor and staff writer for MortgageDaily.com.e-mail: MortgageWriter@aol.com |
