Bankrate: Mortgage Rates Pull Back

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NEW YORK, Dec. 27, 2012 /PRNewswire/ -- Following last week's jump, mortgage
rates pulled back this week, with the benchmark 30-year fixed mortgage rate
sliding to 3.59 percent according to Bankrate.com's weekly national survey. The
average 30-year fixed mortgage has an average of 0.34 discount and origination
points.

(Logo: http://photos.prnewswire.com/prnh/20040122/FLTHLOGO)

To see mortgage rates in your area, go to
http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage rate fell to 2.87 percent and the larger
jumbo 30-year mortgage held at 4.07 percent. Adjustable rate mortgages were
mixed, with the popular 5-year ARM inching lower to 2.77 percent, while the
3-year and 7-year ARMs were a touch higher, both to 2.95 percent.

Mortgage rates pulled back this week as worries re-emerged about the approaching
fiscal cliff. The prospects for an economic slowdown - or outright recession -
should the U.S. go over the fiscal cliff for any length of time helps drive
demand for the safety and security of U.S. government bonds. Mortgage rates are
closely related to yields on long-term government bonds.

The last time mortgage rates were above 5 percent was Apr. 2011. At the time,
the average 30-year fixed rate was 5.07 percent, meaning a $200,000 loan would
have carried a monthly payment of $1,082.22. With the average rate now 3.59
percent, the monthly payment for the same size loan would be $908.17, a
difference of $174 per month for anyone refinancing now.

SURVEY RESULTS

30-year fixed: 3.59% -- down from 3.62% last week (avg. points: 0.34)

15-year fixed: 2.87% -- down from 2.89% last week (avg. points: 0.24)

5/1 ARM: 2.77% -- down from 2.78% 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.

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

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
seven days. The overwhelming majority of respondents, 86 percent, see mortgage
rates remaining more or less unchanged over the coming week. Just 14 percent
forecast a decline, and no one expects further increases over the next seven
days.

For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI

About Bankrate, Inc. (NYSE: RATE)
The Bankrate network of companies includes Bankrate.com, Interest.com,
Mortgage-calc.com, Nationwide Card Services, InsureMe, CreditCardGuide.com,
Bankaholic, CreditCards.com and NetQuote. Each of these businesses helps
consumers to make informed decisions about their personal finance matters. The
company's flagship brand, 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 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. Bankrate.com reviews more than 4,800
financial institutions in 575 markets in 50 states. 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 and The New York Times (NYSE: NYT). Bankrate.com's information is
also distributed through more than 500 newspapers.

For more information contact:
Kayleen Yates
Senior Director, Corporate Communications
kyates@bankrate.com
(917) 368-8677

SOURCE Bankrate, Inc.