Bankrate: Mortgage Rates Down for a Third Straight Week

NEW YORK, Jan. 21 /PRNewswire/ -- The average conforming 30-year fixed mortgage fell again this week, to 5.15 percent according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.45 discount and origination points.

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To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage dropped to 4.56 percent while the larger jumbo 30-year fixed rate retreated to 5.93 percent. Adjustable rate mortgages were lower as well, with the average 1-year ARM dipping to 4.92 percent and the 5-year ARM sliding to 4.63 percent.

Disappointments on the corporate earnings front helped bring mortgage rates lower for a third straight week. Mortgage rates are closely related to yields on long-term government and mortgage-backed bonds. On larger jumbo mortgages, the average 30-year fixed rate is at the lowest level since June 2005. Although the margin between rates on jumbo mortgages and smaller conforming loans has narrowed further in recent weeks, it is still nearly one-half percentage point above normal, pre-credit crisis levels.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 5.15 percent, the monthly payment for the same size loan would be $1,092.05, a savings of nearly $150 per month for a homeowner refinancing now.

SURVEY RESULTS

30-year fixed: 5.15% -- down from 5.23% last week (avg. points: 0.45)

15-year fixed: 4.56% -- down from 4.62% last week (avg. points: 0.42)

5/1 ARM: 4.63% -- down from 4.68% 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. Mortgage rates don't appear to be headed much of anywhere, with 60 percent of respondents expecting mortgage rates to remain more or less unchanged in the next 30 to 45 days. A bit more than one-fourth of the panelists, 27 percent, predict rates will rise and just 13 percent forecast further declines in rates during that period of time.

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.  Each of these businesses helps consumers to 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. 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.  Bankrate, Inc. was acquired by Apax Partners, one of the world's leading private equity investment groups, in September 2009.  Apax operates across the United States, Europe and Asia and has more than 30 years of investing experience. For more information on Apax, visit: www.Apax.com.

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SOURCE Bankrate, Inc.