NEW YORK, March 13 /PRNewswire-FirstCall/ -- Fixed mortgage rates posted a modest increase in the past week, with the average conforming 30-year fixed mortgage rate now 6.39 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.

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The average 15-year fixed rate mortgage popular for refinancing nudged higher, to 5.85 percent, while the average jumbo 30-year fixed rate jumped to 7.6 percent. Adjustable mortgage rates skyrocketed, with the average 5/1 ARM rising nearly one-half percentage point to 6.21 percent.

In the past week, as well as over the past several weeks, fixed mortgage rates have yo-yoed up, down, and around the 6.4 percent mark. But yields on ten-year Treasury notes, to which fixed mortgage rates are typically closely related, have moved consistently lower. Treasury yields have fallen one- quarter percentage point in the past week and nearly one-half percentage point since Feb. 20. This has not translated into lower mortgage rates, as the spread between risk-free Treasury debt and rates for mortgages has expanded. This wider risk premium reflects the nervousness about credit quality and the financial health and capability of entities that guarantee payments on mortgage-backed securities. Conforming mortgage rates are one full percentage point higher than normal, given the level of Treasury yields. For larger jumbo mortgages, the spread is nearly two full percentage points wider than customary levels.

The mortgage rate winds can change direction quickly. On Jan. 23, the average 30-year fixed mortgage rate was 5.57 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,144.38. Now that the average conforming 30-year fixed rate is 6.39 percent, the same $200,000 loan carries a monthly payment of $1,249.70.

    SURVEY RESULTS
    30-year fixed: 6.39% -- up from 6.32% last week (avg. points: 0.4)
    15-year fixed: 5.85% -- up from 5.79% last week (avg. points: 0.35)
    5/1 ARM: 6.21% -- up from 5.72% last week (avg. points: 0.66)

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

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
    kkeneally@bankrate.com
    917-368-8677

NOTE TO EDITORS: The information contained in this release is available for print or broadcast with attribution to Bankrate.com

Source: Bankrate, Inc.