NEW YORK, May 28 /PRNewswire-FirstCall/ -- Mortgage rates bounded higher this week, with the average 30-year fixed mortgage rate rising to 5.45 percent. According to Bankrate.com's weekly national survey, the average 30-year fixed mortgage has an average of 0.41 discount and origination points.

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The average 15-year fixed rate mortgage climbed to 4.86 percent, while the average jumbo 30-year fixed rate rebounded to 6.60 percent. Adjustable rate mortgages were mixed, with the average 1-year ARM notching higher to 5.03 percent and the 5-year ARM retreating to 4.94 percent.

After weeks of relative calm, mortgage rates climbed to the highest point since early February. Investors' nerves were rattled by a potential General Motors bankruptcy and a week of substantial government borrowing. Yields on benchmark Treasury yields increased as a glut of new supply hit the market, and the prospect of a significant corporate bankruptcy further agitated would-be bond investors. The result for mortgage shoppers was a rapid spike in rates. Now the ball is in the Federal Reserve's court, as they could step up the pace of their bond buybacks in an effort to reverse some of this week's increase. Whether or not they will take such measures, and how effective they would be, remains to be seen.

Mortgage rates remain significantly lower than one year ago. This time last year, the average 30-year fixed mortgage rate was 6.20 percent, meaning a $200,000 loan would have carried a monthly payment of $1,224.94. With the average rate now three-quarters of a percentage point lower at 5.45 percent, the monthly payment for the same size loan would be $1,129.31, a savings of $95 per month for a homeowner refinancing now.

SURVEY RESULTS

30-year fixed: 5.45% -- up from 5.24% last week (avg. points: 0.41)

15-year fixed: 4.86% -- up from 4.74% last week (avg. points: 0.41)

5/1 ARM: 4.94% -- down from 4.96% last week (avg. points: 0.53)

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. According to 64 percent of the panelists, expect mortgage rates to keep rising. The remaining 36 percent all 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), 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 500 newspapers.

    For more information contact:
    Kayleen Keneally
    Senior Director, Corporate Communications
    kkeneally@bankrate.com
    917-368-8677

SOURCE Bankrate, Inc.