Last month, the Monthly Treasury Average tumbled — in the process descending to the lowest level that it has been since 2009.
As of May 2016, the MTA was 0.46750 percent, according to an analysis of Federal Reserve Board data by Mortgage Daily.
The index, which is utilized to determine rate changes on some adjustable-rate mortgages, was last this high in December 2009.
As of April 2016, the MTA was
0.43833 percent, while it was calculated to be 0.16750 percent as of May 2015.
MTA is determined according to the daily average of the one-year Treasury yield for each of the most-recent 12 months. Last month, the daily average was 0.59 percent.
The one-year Treasury yield, itself — which a far more widely used ARM index — finished May at 0.68 percent,
surging from 0.56 percent at the end of April, according to Treasury Department data.
But the one-year yield has since subsided, closing at
0.60 percent on Friday.
ARMs accounted for 7.7 percent of all activity in the U.S. Mortgage Market Index from OpenClose and Mortgage Daily for the week ended June 3.
