Bankrate: Mortgage Rates Inch Lower

Jan 28, 2010, 07:30 ET from Bankrate, Inc.

NEW YORK, Jan. 28 /PRNewswire/ -- The average conforming 30-year fixed mortgage rate fell for the fourth consecutive week, settling at 5.13 percent according to's weekly national survey. The average 30-year fixed mortgage has an average of 0.49 discount and origination points.


To see mortgage rates in your area, go to

The average 15-year fixed mortgage dropped to 4.54 percent but the larger jumbo 30-year fixed rate moved higher to 5.99 percent. Adjustable rate mortgages were lower as well, with the average 3-year ARM dipping to 4.65 percent and the 5-year ARM sliding to 4.54 percent.

2010 has been kind to mortgage shoppers thus far, with rates having fallen each week of the new year. Recent market jitters traceable to uncertainty over Bernanke's reconfirmation as Federal Reserve Chairman and President Obama's proposal on the separation of trading from banking activity helped keep mortgage rates moving lower. Mortgage rates are closely related to yields on long-term government and mortgage-backed bonds. The Fed seems intent on wrapping up mortgage bond purchases at the end of the first quarter. Economic worries notwithstanding, this will eventually push mortgage rates higher.  

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 5.13 percent, the monthly payment for the same size loan would be $1,089.59, a savings of more than $150 per month for a homeowner refinancing now.


30-year fixed: 5.13% -- down from 5.15% last week (avg. points: 0.49)

15-year fixed: 4.54% -- down from 4.56% last week (avg. points: 0.43)

5/1 ARM: 4.54% -- down from 4.63% 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

The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next week. Half of panelists predict an increase in mortgage rates this week, and 29 percent expect mortgage rates to remain more or less unchanged. Just 21 percent forecast another decline in rates over the next seven days.  

For the full mortgage Rate Trend Index, go to

About Bankrate, Inc.

The Bankrate network of companies includes,,, Nationwide Card Services,, Fee Disclosure, InsureMe and Bankaholic.  Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company's flagship brand, is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. 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. reviews more than 4,800 financial institutions in 575 markets in 50 states. 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).'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:

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SOURCE Bankrate, Inc.