NEW YORK, Jan. 1 /PRNewswire-FirstCall/ -- Mortgage rates ended 2008 on a downswing, with the average 30-year fixed mortgage rate falling to 5.64 percent. According to Bankrate.com's weekly national survey, the average 30-year fixed mortgage has an average of 0.39 discount and origination points.

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The average 15-year fixed rate mortgage dropped to 5.16 percent, while the average jumbo 30-year fixed rate slumped to 7.14 percent. Adjustable rate mortgages moved lower as well, with the average 1-year ARM dipping to 5.97 percent and the average 5/1 ARM pulling back to 5.86 percent.

The average rate on a 30-year fixed rate mortgage has fallen more than one full percentage point, from 6.77 percent to 5.80 percent, since Oct. 29. Most of that decline has come since the Federal Reserve's Thanksgiving week announcement of $600 billion destined for mortgage-backed securities. Rates were lower this week after the Fed provided some additional details on how they'll pump $500 billion of that money into mortgage-backed securities beginning in Feb. 2009. Low mortgage rates will be a theme in 2009 as Fed and Treasury policies aim to stabilize the housing market by facilitating refinancing and enticing home buyers into the marketplace.

The sharp decline in mortgage rates since Halloween has sparked a refinancing frenzy. Nine weeks ago, the average 30-year fixed mortgage rate was 6.77 percent, meaning a $200,000 loan would have carried a monthly payment of $1,299.86. With the average rate having since fallen to 5.64 percent, the monthly payment on a $200,000 loan is now $1,153.21.



                                SURVEY RESULTS

    30-year fixed: 5.64% -- down from 5.84% last week (avg. points: 0.39)
    15-year fixed: 5.16% -- down from 5.46% last week (avg. points: 0.39)
       5/1 ARM: 5.86% -- down from 5.95% last week (avg. points: 0.41)

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. (Nasdaq: RATE)

The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure and InsureMe. 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. 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 500 newspapers.

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



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

    www.bankrate.com

SOURCE Bankrate, Inc.