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The CMT indexes are volatile and move with the
market. They reflect the state of the economy, and respond quickly to
economic changes. These indexes react more slowly than the CD Indexes , but
more quickly than the 11th District Cost of Funds Index
(COFI) or the 12-Month Treasury Average (MTA)
The
following CMT indexes are the most often used for ARMs: 1-Year Constant Maturity Treasury index (1 Yr
CMT) 3-Year Constant Maturity Treasury index (3 Yr
CMT) 5-Year Constant Maturity Treasury index (5 Yr
CMT) 1 Year Constant Maturity
Treasury Rate 1.25 3.30 3.32 3.36 2.67
3 Year Constant
Maturity Treasury Rate 2.00 3.21
Constant Maturity Treasury (CMT)
indexes
Indexes
adjusted to constant maturities. Yields on Treasury securities
at "constant maturity" are interpolated by the U.S. Treasury from the
daily yield curve, which is based on the closing market bid yields on
actively traded Treasury securities in the over-the-counter market.
This is the most widely used index. Roughly half of all ARMs
are based on this index. It's used on ARMs with annual rate
adjustments. It
is also referred to as the 1-Year Treasury Bill (1Yr T-Bill), the 1-Year
Treasury Security (1Yr T-Sec), or the 1-Year Treasury Spot
index.
This index is less popular than the 1-Year CMT. ARMs based on
the 3 Year CMT will adjust every three years (3Year ARMs).
It may be referred to
as the 3-Year Treasury Security (3Yr T-Sec) index.
Same as the 3 Year CMT, only ARM loans indexed to the 5 Year
CMT will adjust once every five years. The ARM's adjustment period is
usually the same as the security's constant maturity.
Month
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Jan
7.05
5.09
5.61
5.24
4.51
6.12
4.81
2.16
1.36
1.26
2.86
4.45
5.06
Feb
6.70
4.94
5.53
5.31
4.70
6.22
4.68
2.23
1.30
1.27
3.03
4.68
5.05
Mar
6.43
5.34
5.80
5.39
4.78
6.22
4.30
2.57
1.24
4.77
4.92
Apr
6.27
5.54
5.99
5.38
4.69
6.15
3.98
2.48
1.27
1.30
4.90
4.93
May
6.00
5.64
5.87
5.44
4.85
6.33
3.78
2.35
1.18
1.54
3.33
5.00
4.91
Jun
5.64
5.81
5.69
5.41
5.10
6.17
3.58
2.20
1.01
1.92
5.16
4.96
Jul
5.59
5.85
5.54
5.36
5.03
6.08
3.62
1.96
1.12
2.10
3.64
5.22
4.96
Aug
5.75
5.67
5.56
5.21
5.20
6.18
3.47
1.76
1.31
2.02
3.87
5.08
4.47
Sep
5.62
5.83
5.52
4.71
5.25
6.13
2.82
1.72
1.24
2.12
3.85
4.97
4.14
Oct
5.59
5.55
5.46
4.12
5.43
6.01
2.33
1.65
1.25
2.23
4.18
5.01
4.10
Nov
5.43
5.42
5.46
4.53
5.55
6.09
2.18
1.49
1.34
2.50
4.33
5.01
3.50
Dec
5.31
5.47
5.53
4.52
5.84
5.60
2.22
1.45
1.31
4.35
4.94
Month
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Jan
7.66
5.20
6.16
5.38
4.61
6.49
4.77
3.56
2.18
2.27
3.39
4.35
4.79
Feb
7.25
5.14
6.03
5.43
4.90
6.65
4.71
3.55
2.05
2.25
3.54
4.64
4.75
Mar
6.89
5.79
6.38
5.57
5.11
6.53
4.43
4.14
1.98
3.91
4.74
4.51
Apr
6.68
6.11
6.61
5.58
5.03
6.36
4.42
4.01
2.06
2.57
3.79
4.89
4.60
May
6.27
6.27
6.42
5.61
5.33
6.77
4.51
3.80
1.75
3.10
3.72
4.97
4.69
Jun
5.80
6.49
6.24
5.52
5.70
6.43
4.35
3.49
1.51
3.26
3.69
5.09
5.00
Jul
5.89
6.45
6.00
5.47
5.62
6.28
4.31
3.01
1.93
3.05
3.91
5.07
4.82
Aug
6.10
6.21
6.06
5.24
5.77
6.17
4.04
2.52
2.44
2.88
4.08
4.85
4.34
Sep
5.89
6.41
5.98
4.62
5.75
6.02
3.45
2.32
2.23
2.83
3.96
4.69
4.06
Oct
5.77
6.08
5.84
4.18
5.94
5.85
3.14
2.25
2.26
2.85
4.33
4.72
4.01
Nov
5.57
5.82
5.76
4.57
5.92
5.79
3.22
2.32
2.45
3.09
4.43
4.64
3.35
Dec
5.39
5.91
5.74
4.48
6.14
5.26
3.62
2.23
2.44
4.39
4.58
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