Bankrate: Mortgage Rates Dawdle Despite Jobs Report

NEW YORK, Jan. 11 /PRNewswire-FirstCall/ -- Mortgage rates were flat this week even as concerns about inflation began to percolate. The average 30-year fixed rate mortgage remained at 6.24 percent. According to Bankrate.com's weekly national survey of large lenders, the 30-year fixed rate mortgages had an average of 0.23 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing inched lower to 5.98 percent. On larger loans, the average jumbo 30-year fixed rate was unchanged at 6.47 percent. Adjustable mortgage rates moved higher, with the average 5/1 ARM stepping higher to 6.17 percent and the average one-year ARM advancing to 5.97 percent.

Mortgage rates showed little movement despite a solid jobs report and strong inflation talk from a key member of the Fed. The monthly employment report was enough to stir inflation concerns with stronger-than-expected job growth and a notable pickup in worker compensation. It didn't take long to get proof that inflation remains on the Fed's radar screen as Fed Vice Chairman Donald Kohn noted in a speech that "it is still too early to relax our concerns" about the pace of price increases. The bond market greeted all of this with a shrug, with bond yields and mortgage rates showing little fluctuation during the week. Mortgage rates are closely related to the yields on long-term government bonds.

Fixed mortgage rates are sharply lower since the Fed stopped raising interest rates. Six months ago, the average 30-year fixed mortgage rate was 6.87 percent. At the time, the monthly payment on a loan of $165,000 was $1,083.38. With the average 30-year fixed rate now 6.24 percent, the same loan originated today would carry a monthly payment of $1,014.86. Fixed mortgage rates are a compelling refinancing alternative for adjustable rate borrowers facing sharp payment adjustments.

  SURVEY RESULTS
  30-year fixed: 6.24% -- unchanged from last week (avg. points: 0.23)
  15-year fixed: 5.98% -- down from 5.99% last week (avg. points: 0.33)
  5/1 ARM: 6.17% -- up from 6.15% last week (avg. points: 0.37)

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

The survey is complemented by Bankrate's weekly forward-looking Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next 30 to 45 days. The panelists have mixed opinions. Just 20 percent predict mortgage rates will fall, while the remainder is evenly split between forecasting an increase in rates or expecting rates to remain unchanged in the coming 30 to 45 days.

For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI 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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