Bankrate: Mortgage Rates Slide for Third Straight Week

NEW YORK, Sept. 4 /PRNewswire-FirstCall/ -- Economic worries pushed mortgage rates down again, with the average conforming 30-year fixed mortgage rate falling to 6.55 percent. According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.41 discount and origination points.

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The average 15-year fixed rate mortgage popular for refinancing dropped to 6.09 percent, while the average jumbo 30-year fixed rate retreated to 7.52 percent. Adjustable mortgage rates were mostly higher, with the average 1-year ARM jumping to 6.43 percent and the average 5/1 ARM inching up to 6.29 percent.

Mortgage rates moved lower amid mounting economic worries, and not just worries about the U.S. economy. A global economic slowdown has investors favoring the safe haven of Treasury securities, with yields falling as bond prices rise. The appeal of Treasuries has been enhanced by the retreat in oil prices, which eases the inflation angst of bond investors. The movements in mortgage rates are often closely related to yields on long-term government bonds. Mortgage rates continue to hover at an abnormally wide margin above Treasuries, reflecting the record delinquencies and ongoing credit crunch.

Although mortgage rates have been relatively calm in recent weeks, it has been a wild ride for much of 2008. Seven months ago, the average 30-year fixed mortgage rate was 5.78 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,170.96. But at today's rate of 6.55 percent, a $200,000 loan would mean a monthly payment that is $100 higher, at $1,270.72.

                                SURVEY RESULTS

    30-year fixed: 6.55% -- down from 6.60% last week (avg. points: 0.41)
    15-year fixed: 6.09% -- down from 6.14% last week (avg. points: 0.41)
        5/1 ARM: 6.29% -- up from 6.27% last week (avg. points: 0.35)

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. More than half of respondents, 53 percent, expect rates to rebound and move higher. Only 29 percent forecast a continued decline in mortgage rates and the remaining 18 percent predict rates will remain more or less unchanged in the next 30 to 45 days.

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

About Bankrate, Inc. (NASDAQ: RATE)

The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure and InsureMe. Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company's flagship brand, 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 rates and other information on 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 500 newspapers.

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