NEW YORK, March 31 /PRNewswire-FirstCall/ -- Mortgage rates took a break
from the steady rise seen in the past six weeks. The average 30-year fixed
rate mortgage dipped slightly to 6.13 percent from 6.15 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 0.31 discount and
origination points.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO )
The 15-year fixed rate mortgage, popular for refinancing, was unchanged at
5.67 percent. Meanwhile, the average rate for the jumbo 30-year fixed rate
mortgage retreated from 6.35 percent to 6.32 percent. Adjustable rate
mortgages moved higher, with the average 5/1 adjustable rate mortgage rising
from 5.58 percent to 5.61 percent and the one-year ARM soaring to 4.72
percent.
After climbing more than half of one percentage point in the past six
weeks, fixed mortgage rates fell slightly this week. A decline in consumer
confidence for March was attributed to worries about rising gasoline prices
and a pessimistic job outlook, raising concerns about the strength of consumer
spending in coming months. Despite forecasts of additional interest rate
hikes, investors sought government and mortgage-backed bonds. As demand for
bonds fluctuates, so do both bond yields and mortgage rates. Mortgage rates
are closely related to yields on long-term government bonds.
Mortgage rates and monthly payments are considerably higher than one year
ago. At the time, the average 30-year fixed mortgage rate was 5.6 percent. At
the time, the monthly payment on a $165,000 loan was $947.23. With the average
rate now 6.13 percent, the monthly payment on the same $165,000 loan is
$1,003.09. The $55.86 difference in monthly payments amounts to more than
$20,000 over the loan term.
SURVEY RESULTS
30-year fixed: 6.13% -- down from 6.15% last week (avg. points: 0.31)
15-year fixed: 5.67% -- unchanged from 5.67% last week (avg. points: 0.36)
5/1 ARM: 5.61% -- up from 5.58% last week (avg. points: 0.25)
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. Most respondents -- 60 percent -- predict
that rates will remain unchanged in coming weeks. The remaining 40 percent are
evenly split between saying rates will rise or fall further 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 is a destination
site of personal finance channels, including banking, investing, taxes and
small business 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 more than 400 markets in 50 states. In 2004, Bankrate.com had
over 44 million visitors, according to comScore Media Metrix. 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 100 national
and state publications.
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For more information contact:
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Director, Corporate Communications
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kkeneally@bankrate.com
917-368-8677
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