Bankrate: Mortgage Rates Hold Steady

NEW YORK, Aug. 27  /PRNewswire-FirstCall/ -- The average 30-year fixed mortgage rate is 5.53 percent compared to 5.52 percent last week, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.32 discount and origination points.

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The average 15-year fixed rate and jumbo 30-year fixed mortgage rates both inched lower by one one-hundredth of a percentage point to 4.83 percent and 6.43 percent, respectively. Adjustable rate mortgages were mixed, with the average 1-year ARM dropping to 5.1 percent and the 5-year ARM climbing to 4.95 percent.

One week after falling to the lowest levels since Memorial Day, mortgage rates held steady. The flow of economic news continues to be positive but the widely held view of a slow recovery is helping keep rates low. The difference between jumbo and conforming mortgage rates has narrowed to levels last seen one year ago, before the failure of Lehman Brothers caused the credit markets to seize up. The difference is still three times the spread that prevailed prior to the onset of the credit crunch in 2007.

Mortgage rates are more than one full percentage point lower than one year ago. This time last year, the average 30-year fixed mortgage rate was 6.6 percent, meaning a $200,000 loan would have carried a monthly payment of $1,277.31. With the average rate now 5.53 percent, the monthly payment for the same size loan would be $1,139.35, a savings of $138 per month for a homeowner refinancing now.

  SURVEY RESULTS
  30-year fixed: 5.53% -- up from 5.52% last week (avg. points: 0.32)

  15-year fixed: 4.83% -- down from 4.84% last week (avg. points: 0.33)

  5/1 ARM: 4.95% -- up from 4.86% 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. Rates probably aren't headed higher or lower, with 64 percent of panelists expecting mortgage rates to remain more or less unchanged over the next 30 to 45 days. The remaining respondents are evenly split, with 18 percent predicting an increase in rates and 18 percent forecasting a decline in mortgage rates in the next 30 to 45 days.

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


  About Bankrate, Inc.


The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, InsureMe, CreditCardGuide.com and Bankaholic.com. Each of these businesses helps consumers 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 2008, Bankrate.com had nearly 72 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.

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

NOTE TO EDITORS:

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Analysis, fact checking:  Our personal finance experts can offer insights, quotes, background, research and rate data.

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Editor Alert: Receive breaking news from Bankrate via your e-mail:  http://www.bankrate.com/editorsalert

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  For more information contact:
  Chris Spagnuolo
  Public Relations Manager
  [phone]
  

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DATASOURCE: Bankrate, Inc.



CONTACT:  Chris Spagnuolo, Public Relations Manager, Bankrate, Inc.,

[phone], 



Web Site:  http://www.bankrate.com/ 

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