Bankrate: Fixed Mortgage Rates at 4-Month High

NEW YORK, Feb. 28 /PRNewswire-FirstCall/ -- Fixed mortgage rates increased for the third week in a row, with the average conforming 30-year fixed mortgage rate now 6.41 percent. According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.4 discount and origination points.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO )

The average 15-year fixed rate mortgage popular for refinancing was unchanged at 5.87 percent, while the average jumbo 30-year fixed rate fell to 7.43 percent. Adjustable mortgage rates pulled back, with the average one-year ARM falling to 5.49 percent, and the average 5/1 ARM retreating to 5.68 percent.

Mortgage rates were mixed this week, with fixed rates moving to the highest levels since mid-October while adjustable rates pulled back. With the Federal Reserve expected to cut interest rates again at their meeting in March, rates for things like adjustable rate mortgages that are tied to short- term benchmarks have been moving lower. But concerns about inflation and continued turmoil in credit markets has pushed long-term interest rates, and especially fixed mortgage rates, higher. Even though the difference between fixed and adjustable mortgage rates has grown, borrowers should be wary about gravitating toward lower payment adjustable rate mortgages and taking on the unwanted risk of future interest rate adjustments. Borrowers should carefully calibrate their choice of mortgage product with their intended stay in the home in order to minimize exposure to higher rates later.

The mortgage rate winds can change direction quickly. Five weeks ago, the average 30-year fixed mortgage rate was 5.57 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,144.38. Now that the average conforming 30-year fixed rate is 6.41 percent, the same $200,000 loan carries a monthly payment of $1,252.32.

                                SURVEY RESULTS

     30-year fixed: 6.41% -- up from 6.37% last week (avg. points: 0.40)

     15-year fixed: 5.87% -- unchanged from last week (avg. points: 0.35)

       5/1 ARM: 5.68% -- down from 5.77% last week (avg. points: 0.33)

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. Half of the panelists see mortgage rates moving back down in the weeks to come, with 42 percent predicting further increases. Just 8 percent foresee mortgage rates remaining more or less 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 ("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.com 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 2007, Bankrate.com had nearly 60 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 and The New York Times NYSE: NYT. Bankrate.com's information is also distributed through more than 450 national and state publications. In addition to Bankrate.com, Bankrate also owns and operates Bankrate Select, an Internet lead aggregator and Mortgage Market Information Services, Inc. and Interest.com, Inc., each of which publishes mortgage guides and financial rates and information; Nationwide Card Services, which markets a comprehensive line of consumer and business credit cards via the Internet; and Savingforcollege.com, the premier Internet destination for objective information about 529 college savings plans.

    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