BANKRATE INC 
By (Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO )
The average 15-year fixed rate mortgage jumped to 5.37 percent, while the average jumbo 30-year fixed rate rose to 6.96 percent. Adjustable rate mortgages were up this week as well, with the average 1-year ARM moving to 5.16 percent and the 5-year ARM climbing to 5.49 percent.
The rising mortgage rates have made it undesirable for many homeowners to refinance their mortgages. Yet there is an option left for them: the adjustable rate mortgage or ARM.
Bankers say ARMs got a bad rap in the mortgage debacle. The riskiest loans -- subprime, low down payment, interest-only, negative amortizing and stated income -- tended to be ARMs. The mortgage meltdown occurred because those loan features were layered on top of ARMs. In many cases, the adjustable rates didn't get borrowers into trouble; people defaulted on their loans because they didn't put any money down and they exaggerated their earnings when they applied for stated-income loans.
A few months ago, only about 1 percent of mortgage applications were for ARMs. Last week, it was 3.4 percent, according to the Mortgage Bankers Association.
Mortgage rates remain significantly lower than one year ago. This time last year, the average 30-year fixed mortgage rate was 6.48 percent, meaning a
SURVEY RESULTS
30-year fixed: 5.95% -- up from 5.65% last week (avg. points: 0.42)
15-year fixed: 5.37% -- up from 5.06% last week (avg. points: 0.38)
5/1 ARM: 5.49% -- up from 5.20% last week (avg. points: 0.48)
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. The majority of the panelists, 57 percent, expect mortgage rates to keep rising and 29 percent predicted that rates will decline over the next 30 to 45 days.
For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI.
About Bankrate, Inc.
The Bankrate network of companies (Nasdaq: RATE) includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, InsureMe, CreditCardGuide.com and Bankaholic.com. Each of these businesses helps consumers 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. In 2008, Bankrate.com had nearly 72 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO - News),
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.
