NEW YORK, May 7 /PRNewswire-FirstCall/ -- Mortgage rates inched higher this week, with the average 30-year fixed mortgage rate rising to 5.27 percent. According to Bankrate.com's weekly national survey, the average 30-year fixed mortgage has an average of 0.38 discount and origination points. (Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO) The average 15-year fixed rate mortgage increased to 4.78 percent, while the average jumbo 30-year fixed rate nudged higher to 6.68 percent. Adjustable rate mortgages were broadly higher, with the average 3-year ARM jumping to 5.27 percent while the 10-year ARM climbed to 5.76 percent. The movement in fixed mortgage rates remains very subdued, despite persistent increases in benchmark Treasury yields. As a result, the spread between the rate paid by a mortgage borrower and the return earned by investors in risk-free government bonds continues to narrow. For a conforming 30-year fixed rate mortgage, this spread is the narrowest since November. On larger jumbo loans, the spread is at the narrowest point in the past 12 months. The continued improvement in mortgage spreads is largely attributable to the Federal Reserve's ongoing purchases of mortgage-backed bonds. Mortgage rates remain near historic lows. Six months ago, the average 30-year fixed mortgage rate was 6.44 percent, meaning a $200,000 loan would have carried a monthly payment of $1,256.25. With the average rate now more than one percentage point lower at 5.27 percent, the monthly payment for the same size loan would be $1,106.89, a savings of nearly $150 per month for a homeowner refinancing now. SURVEY RESULTS 30-year fixed: 5.27% -- up from 5.23% last week (avg. points: 0.38) 15-year fixed: 4.78% -- up from 4.73% last week (avg. points: 0.39) 5/1 ARM: 5.07% -- up from 5.05% last week (avg. points: 0.41) 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. Don't hold out for lower rates, as just 9 percent of the panelists predict mortgage rates will pull back. The majority of respondents, 55 percent, forecast further increases in mortgage rates and 36 percent expect mortgage 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. 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:YHOONASDAQ:-NASDAQ:News), America Online (NYSE:TWXNYSE:-NYSE:News), The Wall Street Journal and The New York Times (NYSE:NYT -NYSE:News). 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 For more information contact: Kayleen Keneally Senior Director, Corporate Communications 917-368-8677 http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO http://photoarchive.ap.org/ DATASOURCE: Bankrate, Inc. CONTACT: Kayleen Keneally, Senior Director, Corporate Communications, Bankrate, Inc., , +1-917-368-8677 Web Site: http://www.bankrate.com/

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