NEW YORK, Aug. 19 /PRNewswire-FirstCall/ -- Fixed mortgage rates dropped
again this week as a new report quelled fears of accelerating inflation. The
average 30-year fixed rate mortgage fell to 5.82 percent, according to
Bankrate.com's (Nasdaq: RATE) 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.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO )
The 15-year fixed rate mortgage popular for refinancing retreated from 5.3
percent to 5.2 percent. The average rate for the jumbo 30-year fixed rate
mortgage dropped from 6.12 percent to 6.06 percent, and the average one-year
adjustable rate mortgage sank from 4.15 percent to 4.09 percent.
The latest decline in mortgage rates is due to the Aug. 17 release of the
Consumer Price Index, which showed prices dipping slightly since July. At the
core level, excluding food and energy, prices were up a scant 0.1 percent. The
tame inflation report calmed the nerves of bond investors -- including buyers
of mortgage-backed bonds -- who bid bond prices higher in response. Mortgage
rates are closely related to yields on long-term government bonds. Mortgage
rates have declined by nearly one-half percentage point since the Federal
Reserve began boosting short-term interest rates on June 30.
Falling mortgage rates have brought monthly payments down, too. On June
30, when the average 30-year fixed mortgage rate was 6.3 percent, the monthly
payment on a $165,000 loan was $1,021.31. With the average rate now 5.82
percent, the monthly payment on the same $165,000 loan is $970.25. The
difference in monthly payments of $51.06 amounts to more than $18,300 over the
loan term.
SURVEY RESULTS
30-year fixed: 5.82% -- down from 5.91% last week (avg. points: 0.32)
15-year fixed: 5.2% -- down from 5.3% last week (avg. points: 0.31)
1-year ARM: 4.09% -- down from 4.15% last week (avg. points: 0.24)
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.
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. Respondents are evenly divided, with 37.5
percent predicting rates to rise, and 37.5 percent predicting rates to fall
further. The remaining 25 percent expect rates to remain unchanged in the next
30 to 45 days.
For a full analysis of this week's move in mortgage rates, go to
http://www.bankrate.com/mortgagerates
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, the
Internet's leading consumer banking marketplace. Bankrate.com averages 4.1
million unique visitors per month, according to comScore Media Metrix, which
ranks Bankrate.com first in unique visitors in the "Financial Information and
Advice" category. Bankrate.com reviews more than 4,800 financial institutions
in more than 407 markets in 50 states. Bankrate.com is a destination site of
personal finance channels, including banking, investing, taxes and small
business finance. It is the leading aggregator of more than 310 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 provides financial applications and information to
a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America
Online, The Wall Street Journal (NYSE: DJ) and The New York Times (NYSE: NYT).
Bankrate.com's information is also distributed through more than 100 national
and state publications.
NOTE TO EDITORS:
Interviews: The reporters, financial experts and management team are
available for print, Web, radio and TV interviews -- live and taped.
Analysis, fact checking: Our personal finance experts can offer insights,
quotes, background, research and rate data.
Radio: The Bankrate Personal Finance Minute for Radio is available for
broadcast. Multiple talkers available for shows -- live or taped.
TV: Our experts are experienced with live and taped segments. We have
talkers available via satellite feed.
Print/Web: Award-winning reporters and editors creating thousands of
evergreen and fresh articles for your paper or site.
Editors' Alert: Receive breaking news from Bankrate via your email:
http://www.bankrate.com/editorsalert
Learn more about Bankrate management:
http://www.bankrate.com/coinfo/staff.asp
Use Bankrate.com's press page: http://www.bankrate.com/broadcast
For more information contact:
Paula Sirois
AVP - PR for Bankrate, Inc.
http://www.bankrate.com/broadcast
psirois@bankrate.com
561-630-1499
SOURCE Bankrate, Inc,
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Related links:
http://www.bankrate.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Paula Sirois of Bankrate, Inc.,
+1-561-630-1499
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