Bankrate: Mortgage Rates Mixed Ahead of Employment Report

NEW YORK, Oct. 5 /PRNewswire-FirstCall/ -- Mortgage rates were mixed, with fixed rates rising while adjustable rates pulled back. The average 30-year fixed mortgage rate ticked higher to 6.31 percent, but remains at levels not seen since March. According to Bankrate.com's weekly national survey of large lenders, the 30-year fixed rate mortgages had an average of 0.31 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing returned to the 6 percent mark, up from 5.96 percent last week. On larger loans, the average jumbo 30-year fixed rate was unchanged at 6.57 percent. Adjustable rate mortgages slipped. The average 5/1 adjustable rate mortgage inched lower to 6.06 percent and the average one-year ARM retreated to 5.88 percent.

News of slower economic growth, falling oil prices, and a belief that the Fed will ultimately cut interest rates has resulted in lower government bond yields and fixed mortgage rates. Fixed mortgage rates are closely related to yields on long-term government bonds. The September employment report to be released Oct. 6 is a likely catalyst for additional volatility in bond yields and mortgage rates.

Fixed mortgage rates have dropped notably since the Fed last hiked rates at the end of June. At the time, the average 30-year fixed mortgage rate was 6.93 percent, meaning that the monthly payment on a loan of $165,000 was $1,090. With the average 30-year fixed rate now 6.31 percent, the same loan originated today would carry a monthly payment of $1,022.38. Fixed mortgage rates are a compelling refinancing alternative for adjustable rate borrowers facing sharp payment adjustments.

                              SURVEY RESULTS

   30-year fixed: 6.31% -- up from 6.29% last week (avg. points: 0.31)
     15-year fixed: 6% -- up from 5.96% last week (avg. points: 0.3)
     5/1 ARM: 6.06% -- down from 6.07% last week (avg. points: 0.31)

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

For a full analysis of this week's move in mortgage rates, go to: http://www.bankrate.com/mortgagerates

About Bankrate, Inc.

Bankrate, Inc. (NASDAQ: RATE) owns and operates Bankrate.com, a leading Internet consumer banking marketplace. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. It is the leading aggregator of more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2005, Bankrate.com had over 46 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (NASDAQ: YHOO) , America Online (NYSE: TWX) , The Wall Street Journal (NYSE: DJ) and The New York Times (NYSE: NYT) . Bankrate.com's information is also distributed through more than 400 national and state publications. In addition to Bankrate.com, Bankrate, Inc. also owns and operates FastFind, an internet lead aggregator and MMIS/Interest.com, which publishes mortgage guides and financial rates and information.

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