Bankrate: Mortgage Rates Hover at Multi-year High

NEW YORK, March 16 /PRNewswire-FirstCall/ -- Fixed mortgage rates dipped slightly, one week after hitting the highest point since Sept. 2003. The average 30-year fixed rate mortgage is now 6.43 percent, according to Bankrate.com's weekly national survey of large lenders. The 30-year fixed rate mortgages in this week's survey had an average of 0.32 discount and origination points.

The average 15-year fixed mortgage rate ticked lower, from 6.09 percent to 6.08 percent, and the average jumbo 30-year fixed rate slipped from 6.63 percent to 6.6 percent. Adjustable rate mortgages were mixed, with the average 5/1 adjustable rate mortgage slumping from 6.13 percent to 6.07 percent, while the average one-year ARM climbed from 5.76 percent to 5.79 percent.

Mortgage rates took a breath after a larger-than-expected decline in February retail sales. Since retail sales are the pulse of consumer spending, any drop-off stokes fears of a slowing economy. Yields on bonds, including government-issued and mortgage-backed securities, fell as expected. But record trade and current account deficits counteracted any increased demand for bonds, so mortgage rates moved only slightly. Fixed mortgage rates for each of the past two weeks remain higher than any other week dating back to Sept. 2003.

Mortgage rates are approximately six-tenths of a percentage point higher than six months ago. In mid-September, the average 30-year fixed mortgage rate was 5.84 percent, meaning that the monthly payment on a loan of $165,000 was $972.35. With the average 30-year fixed rate at 6.43 percent, the same loan originated now would carry a payment of $1,035.33. Although fixed mortgage rates are higher than six months ago, the increase is still less than what is facing many adjustable rate mortgage borrowers. Fixed mortgage rates remain an attractive refinancing alternative for adjustable rate borrowers.

SURVEY RESULTS
30-year fixed: 6.43% -- down from 6.45% last week (avg. points: 0.32)
15-year fixed: 6.08% -- down from 6.09% last week (avg. points: 0.37)
5/1 ARM: 6.07% -- down from 6.13% 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. This week, half of panelists predict rates to resume the upward climb. One-third of respondents expect rates to remain unchanged in coming weeks, and just 17 percent say rates will decline further. 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.