Constant Maturity Treasury Indexes

Three Month Maturity

Constant maturity Treasury indexes are used on regular basis by lenders to set the interest rates on adjustable rate mortgages.

One Year Treasury

The Fed’s latest target interest rate cut (range of zero to 0.25%), lowered the rate on which the majority of adjustable-rate mortgages are based. The 1 Yr T. CMT index is used to set the cost of variable-rate loans, particularly ARMs. The index, known for its volatility, responds quickly to changes in economic conditions.

About Ron Haruni 1033 Articles
Ron is the Co-Founder & Editor in Chief of Wall Street Pit. Web Site: Wall Street Pit

Be the first to comment

Leave a Reply

Your email address will not be published.