Bankrate: Mortgage Rates Nudge Higher

NEW YORK, May 4 /PRNewswire-FirstCall/ -- Fixed mortgage rates jogged higher
in the past week, with the average 30-year fixed rate mortgage rising from
6.64 percent to 6.67 percent, according to Bankrate.com's weekly national
survey of large lenders. This is the highest since the week of June 12,
2002. The 30-year fixed rate mortgages in this week's survey had an average
of 0.36 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing stepped up
to 6.29 percent. On larger loans, the average jumbo 30-year fixed rate was
unchanged at 6.83 percent. Adjustable rate mortgages inched higher as well.
The average 5/1 adjustable rate mortgage ticked up to 6.32 percent, and the
average one-year ARM nosed higher to 5.89 percent.

Mortgage rates bobbed up and down in the past week, initially declining
following Fed Chairman Ben Bernanke's report before the Congressional Joint
Economic Committee. Bernanke's mention of a potential pause in interest rate
hikes buoyed spirits that the Fed might not raise rates as much as expected.
But that likelihood was reconsidered once Bernanke remarked that he had
misinterpreted, and was merely mentioning the possibility of a pause. Rates
then moved back up, with the ten year Treasury yield rising to 5.15 percent
as Bernanke reiterated that further Fed action will be data dependent.
Mortgage rates are closely related to yields on long-term government bonds.

Fixed mortgage rates have increased notably compared to one year ago. This
time last year, the average 30-year fixed mortgage rate was 5.81 percent,
meaning that the monthly payment on a loan of $165,000 was $969.19. Although
fixed mortgage rates have been up and down since, the average 30-year fixed
rate is now 6.67 percent, meaning the same loan originated now would carry a
payment of $1,061.43. Fixed mortgage rates remain an attractive refinancing
alternative for adjustable rate borrowers facing sharp payment adjustments.

SURVEY RESULTS

30-year fixed: 6.67% -- up from 6.64% last week (avg. points: 0.36)
15-year fixed: 6.29% -- up from 6.27% last week (avg. points: 0.36)
5/1 ARM: 6.32% -- up from 6.31% last week (avg. points: 0.38)

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. This week, the panelists are split, with
43 percent expecting rates to rise further and an equal 43 percent
predicting no change in rates. The remaining 14 percent say rates will
decline from current levels over the next 30 to 45 days.

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, a leading
Internet consumer banking marketplace. Bankrate.com is a destination site of
personal finance channels, including banking, investing, taxes, debt
management and college 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 575 markets in 50 states. In 2005, Bankrate.com
had over 46 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 (NYSE:DJ) and The New York Times (NYSE:NYT). Bankrate.com's
information is also distributed through more than 400 national and state
publications. In addition to Bankrate.com, Bankrate, Inc. also owns and
operates FastFind, an internet lead aggregator and MMIS/Interest.com, which
publishes mortgage guides and financial rates and information.