Bankrate: Mortgage Rates Inch Higher

March 25, 2004

 
    NEW YORK, /PRNewswire-FirstCall/ -- Mortgage rates inched upward,
but remain squarely in refinancing territory. The average 30-year fixed rate
mortgage increased from 5.41 percent to 5.46 percent, according to
Bankrate.com's weekly national survey of large lenders. Mortgage rates are
still close to the 46-year low of 5.28 percent established on June 11, 2003.
The mortgages in this week's survey had an average of 0.37 discount and
origination points.
    The 15-year fixed rate mortgage popular for refinancing nosed higher, from
4.73 percent to 4.75 percent. The jumbo 30-year fixed rate mortgage climbed
three basis points to 5.66 percent and the one-year adjustable rate mortgage
increased five basis points to 3.47 percent. A basis point is one one-
hundredth of one percentage point.
    Just as lingering job market concerns have been a significant factor in
rates moving lower, the job market may be what ultimately pushes rates higher.
When the long-awaited improvement in the job market begins to materialize,
investors are likely to begin selling long-term government bonds, causing bond
yields and mortgage rates to rise. Mortgage rates are closely related to
yields on long-term government bonds. However, the uncertainty about when the
job market will improve is keeping a lid on mortgage rates for now.
    Low mortgage rates mean low monthly payments for home buyers and
refinancers alike. Six months ago, the average 30-year fixed mortgage rate was
6.01 percent. At that time, the monthly payment for a $165,000 30-year fixed
rate mortgage was $990.32. Now, the monthly payment on the same loan would be
$932.72. The $57.60 difference in monthly payments amounts to more than
$20,700 over the loan term.

                                SURVEY RESULTS

     30-year fixed: 5.46% -- up from 5.41% last week (avg. points: 0.37)
     15-year fixed: 4.75% -- up from 4.73% last week (avg. points: 0.35)
       1-year ARM: 3.47% -- up from 3.42% last week (avg. points: 0.32)

    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.
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. Is this the bottom? This week, half of the
respondents predict rates will increase, while the other half predict rates
will remain unchanged. None of the respondents predicted a further decline in
mortgage rates.

    For a full analysis of this week's move in mortgage rates, go to
http://www.bankrate.com/mortgagerates

    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, the
Internet's leading consumer banking marketplace. Bankrate.com averages 4
million unique visitors per month, according to comScore Media Metrix, which
ranks Bankrate.com first in unique visitors in the "Financial Information and
Advice" category. Bankrate.com reviews more than 4,800 financial institutions
in more than 300 markets in 50 states. Bankrate.com is a destination site of
personal finance channels, including banking, investing, taxes and small
business finance. It is the leading aggregator of more than 250 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 provides financial applications and information to
a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America
Online (NYSE: AOL), The Wall Street Journal (NYSE: DJ) and The New York Times
(NYSE: NYT). Bankrate.com's information is also distributed through more than
100 national and state publications. The Company's stock is included in the
Russell 3000 Index and the Russell 2000 Index.

     For more information contact:
     Paula Sirois, PR for Bankrate, Inc.
     561-630-2400 x1499
     psirois@bankrate.com