Bankrate: Fixed Mortgage Rates Cross 6 Percent Threshold

NEW YORK, April 3, 2008 LAWFUEL — After two straight
weeks of declines, fixed mortgage rates rebounded, with the average
conforming 30-year fixed mortgage rate moving up to 6.12 percent. According to Bankrate.com’s weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.4 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing
increased by the same amount, to 5.7 percent, and the average jumbo 30-year fixed rate is now 7.52 percent. Adjustable mortgage rates were mixed, with the average 1-year ARM rising further to 6.37 percent while the average 5/1 ARM retreated to 6.04 percent.

Both bond yields and mortgage rates posted increases this week in the
absence of any bad news in financial markets. The average 30-year fixed
mortgage rate crossed the 6 percent mark, to 6.12 percent. Meanwhile, the
average 5/1 ARM rate declined for a second consecutive week, falling back
to 6.04 percent. This restores some semblance of a normal relationship
between fixed rate mortgages and the 5/1 ARM. Rates for adjustable
mortgages are typically lower than those of fixed rate mortgages, an
enticement for borrowers shouldering interest rate risk. But that
relationship was thrown on its ear the previous two weeks as rates for
adjustable mortgages spiked amid a lack of investor demand. Even now, rates for one-year, seven-year, and ten-year ARMs remain above the level of the average 30-year fixed rate mortgage.

Mortgage rates are right back where they were at the beginning of the
year, but it has been a wild ride over the past three months. The average
30-year fixed mortgage rate was as low as 5.57 percent in January, meaning that a $200,000 loan would have carried a monthly payment of $1,144.38. In February, the average 30-year fixed rate got as high as 6.41 percent, which
meant the same $200,000 loan would have carried a monthly payment of
$1,252.32.

SURVEY RESULTS
30-year fixed: 6.12% — up from 5.95% last week (avg. points: 0.40)
15-year fixed: 5.70% — up from 5.53% last week (avg. points: 0.38)
5/1 ARM: 6.04% — down from 6.16% last week (avg. points: 0.42)

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. More than half of the
panelists, 53 percent, expect rates to rise further, while 27 percent
forecast a decline in rates. Just 20 percent feel that rates will remain
more or less unchanged in the coming 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) (“Bankrate”) 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. Bankrate.com 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 2007, Bankrate.com had nearly 60 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 and The New York Times (NYSE: NYT).

Bankrate.com’s information is also distributed through more than 450
national and state publications. In addition to Bankrate.com, Bankrate also owns and operates Bankrate Select, an Internet lead aggregator and Mortgage Market Information Services, Inc. and Interest.com, Inc., each of which publishes mortgage guides and financial rates and information; Nationwide Card Services, which markets a comprehensive line of consumer and business credit cards via the Internet; and Savingforcollege.com, the premier Internet destination for objective information about 529 college savings plans.

For more information contact:
Kayleen Keneally
Senior Director, Corporate Communications
[email protected]
917-368-8677

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