Bankrate: Mortgage Rates Rise Following Employment Report NEW YORK, July 14 /PRNewswire-FirstCall/ -- Mortgage rates climbed for the second week in a row as a lukewarm employment report dispelled fears of both an economic slowdown and higher inflation. The average 30-year fixed rate mortgage climbed from 5.7 percent to 5.76 percent, according to Bankrate.com's weekly national survey of large lenders. The 30-year fixed rate mortgages in this week's survey had an average of 0.39 discount and origination points. The 15-year fixed rate mortgage popular for refinancing ascended to 5.36 percent from 5.29 percent. The average rate for the jumbo 30-year fixed rate mortgage hit the 6 percent mark, rising from 5.95 percent. Adjustable rate mortgages were mixed, with the average 5/1 adjustable rate mortgage jumping from 5.27 percent to 5.35 percent, while the one-year ARM dipped to 4.71 percent from 4.76 percent one week ago. (Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO ) The monthly employment report issued Jul. 8 showed moderate job growth in the month of June. While this type of report would not normally cause interest rates to rise, it did reinforce the notion of the "Goldilocks economy," one that is not too hot, but not too cold either. With things not as bad as the pessimists thought but not as strong as the optimists predicted, there were fewer fears about an economic downturn or potentially higher labor costs that would induce inflation. In response to both, bond investors sold long-term Treasury securities. Mortgage rates are closely related to yields on long-term government bonds. Yields on ten-year Treasury notes have climbed from 3.94 percent to 4.16 percent since the Fed raised rates for the ninth time on June 30, pushing mortgage rates up in each of the past two weeks. Fixed mortgage rates remain very low, and so too do monthly payments. One year ago, the average 30-year fixed mortgage rate was 6.11 percent. At the time, the monthly payment on a $165,000 loan was $1,000.96. With the average rate now 5.76 percent, the monthly payment on the same $165,000 loan is $963.94. Refinancing now would save $37 each month, or more than $13,300 over the loan term. SURVEY RESULTS 30-year fixed: 5.76% -- up from 5.7% last week (avg. points: 0.39) 15-year fixed: 5.36% -- up from 5.29% last week (avg. points: 0.39) 5/1 ARM: 5.35% -- up from 5.27% 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. 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. Respondents are split this week, with 40 percent expecting rates to remain unchanged in the next 30-45 days, and 40 percent predicting rates will retreat from current levels. The remaining 20 percent expect rates to keep climbing. For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/mortgagerates . For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI . About Bankrate, Inc. Bankrate, Inc. (NASDAQ:RATE) owns and operates Bankrate.com, the Internet's leading consumer banking marketplace. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes and small business finance. It 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 more than 580 markets in 50 states. In 2004, Bankrate.com had over 38 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 (NYSE:DJ) and The New York Times (NYSE:NYT). Bankrate.com's information is also distributed through more than 100 national and state publications. NOTE TO EDITORS: Interviews: The reporters, financial experts and management team are available for print, Web, radio and TV interviews -- live or taped. Analysis, fact checking: Our personal finance experts can offer insights, quotes, background, research and rate data. Radio: The Bankrate Personal Finance Minute for radio is available for broadcast. Multiple talkers available for shows -- live or taped. TV: Our experts are experienced with live and taped segments. We have talkers available via satellite feed. Print/Web: Award-winning reporters and editors creating thousands of evergreen and fresh articles for your paper or site. Editor Alert: Receive breaking news from Bankrate via your e-mail: http://www.bankrate.com/editorsalert Learn more about Bankrate management: http://www.bankrate.com/coinfo/staff.asp Use Bankrate.com's Press Page: http://www.bankrate.com/broadcast Kayleen Keneally Director, Corporate Communications http://www.bankrate.com/broadcast 917-368-8677 http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO http://photoarchive.ap.org/ DATASOURCE: Bankrate, Inc. CONTACT: Kayleen Keneally, Director, Corporate Communications, Bankrate, Inc., +1-917-368-8677, or Web site: http://www.bankrate.com/

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