Bankrate: This Time, Mortgage Rates Fall in Unison

NEW YORK, Dec. 6 /PRNewswire-FirstCall/ -- Fixed mortgage rates fell to the lowest level since Sept. 2005, with the average conforming 30-year fixed mortgage rate now 6 percent. According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.35 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing decreased by a similar amount, to 5.68 percent. Even the average jumbo 30-year fixed rate joined the party, falling to 7.12 percent. Adjustable mortgage rates were lower across the board, with the average one-year ARM inching down to 6.07 percent, and the average 5/1 ARM climbing to 6.1 percent.

Rates declined on mortgages of all stripes -- fixed rate, adjustable rate, and even jumbo loans. This is in contrast to the movements in recent weeks that saw conforming fixed rates moving lower but rates for adjustable mortgages and larger jumbo fixed rate loans moving higher. However even with the declines, adjustable rate loans offer no bargains with many initial interest rates higher than what a borrower could secure on a fixed rate loan. Continued uncertainty about delinquencies and foreclosures as well as prospects for more interest rate action by the Federal Reserve, even beyond next week's scheduled meeting, are pushing Treasury yields and mortgage rates lower. Mortgage rates are tied to yields on long-term government bonds.

Fixed rate mortgages are currently the most attractive option for borrowers. Just four months ago, the average 30-year fixed mortgage rate was 6.66 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,285.25. Now that the average conforming 30-year fixed rate is 6 percent, the same $200,000 loan carries a monthly payment of $1,199.10.

                                SURVEY RESULTS
    30-year fixed: 6.00% -- down from 6.17% last week (avg. points: 0.35)
    15-year fixed: 5.68% -- down from 5.85% last week (avg. points: 0.32)
       5/1 ARM: 6.10% -- down from 6.21% last week (avg. points: 0.27)

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. Mortgage rates could fall further, with half of the panelists forecasting exactly that. Nearly as many, 41 percent, hold an opposing view and predict interest rates will rise. The remaining 9 percent say rates will remain unchanged over the next 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) ("Bankrate") 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. Bankrate 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 reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2006, Bankrate.com had nearly 53 million unique visitors. Bankrate 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's information is also distributed through more than 400 national and state publications. In addition to Bankrate.com, Bankrate also owns and operates Bankrate Select, an Internet lead aggregator, Mortgage-calc.com, which provides consumers with financial calculators, and Mortgage Market Information Services, Inc. and Interest.com, Inc., each of which publishes mortgage guides and financial rates and information.

    For more information contact:
    Kayleen Keneally
    Senior Director, Corporate Communications
    kkeneally@bankrate.com
    917-368-8677

NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to Bankrate.com