Bankrate: Mortgage Rates Move Lower

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

NEW YORK, Jan. 7 /PRNewswire-FirstCall/ -- The average conforming 30-year fixed mortgage decreased this week to 5.26 percent, according to's weekly national survey. The average 30-year fixed mortgage has an average of 0.43 discount and origination points.


The average 15-year fixed mortgage fell to 4.67 percent while the larger jumbo 30-year fixed rate inched lower to 6.14 percent. Adjustable rate mortgages were mixed, with the average 3-year ARM rising to 4.80 percent and the 5-year ARM dropping to 4.74 percent.

Mortgage rates started off 2010 by breaking a streak of five weekly increases. Optimism about the economy was the driving force behind December's increase in mortgage rates, and heightened demand for the now higher-yielding mortgage-backed and government issued debt helped bring rates lower this week. Mortgage rates are closely related to yields on long-term Treasury securities and mortgage-backed bonds. The risks are clearly tilted toward higher mortgage rates in 2010 as continued improvement in the economy and a return to job growth are both consistent with higher - not lower - mortgage rates.

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 5.26 percent, the monthly payment for the same size loan would be $1,105.65, a savings of $136 per month for a homeowner refinancing now.


30-year fixed: 5.26% -- down from 5.33% last week (avg. points: 0.43)

15-year fixed: 4.67% -- down from 4.73% last week (avg. points: 0.43)

5/1 ARM: 4.74% -- down from 4.77% last week (avg. points: 0.40)

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 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. The panelists are split fairly evenly this week, with 36 percent of respondents predicting rates will rise over the next 30 to 45 days, and 36 percent forecasting that rates will fall. The remaining 28 percent expect mortgage rates to remain more or less unchanged during that period of time.

For the full mortgage Rate Trend Index, go to

To see mortgage rates in your area, 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 group, 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.