NEW YORK, Nov. 16 /PRNewswire-FirstCall/ -- Mortgage rates dropped to the lowest level since Jan. 25, with the average 30-year fixed rate now 6.24 percent. According to Bankrate.com's weekly national survey of large lenders, the 30-year fixed rate mortgages had an average of 0.32 discount and origination points.

The average 15-year fixed rate mortgage, popular for refinancing, dipped back beneath the 6 percent barrier, to 5.98 percent. On larger loans, the average jumbo 30-year fixed rate slid to 6.47 percent. Adjustable rate mortgages also declined. The average 5/1 adjustable rate mortgage settled at 6.13 percent and the average one-year ARM retreated to 5.87 percent.

Indications that inflation pressures may be easing and comments from Federal Reserve Board members downplaying the likelihood of further interest rate hikes helped push mortgage rates lower. The latest reading on the Producer Price Index (PPI) showed a decline in prices, an antidote to the inflation concerns of the Fed. In addition, remarks by several Fed governors in recent days were notably softer than the anti-inflation rhetoric that had prevailed of late. With worries about any additional interest rate hikes put on the back-burner, investors purchased government and mortgage-backed bonds. This pushed bond prices higher and bond yields lower. Mortgage rates are closely related to the yields on long-term government and mortgage-backed bonds.

Fixed mortgage rates are sharply lower than five months ago, when rates were flirting with 7 percent. At that time, the average 30-year fixed mortgage rate peaked at 6.93 percent, meaning that the monthly payment on a loan of $165,000 was $1,090. With the average 30-year fixed rate now 6.24 percent, the same loan originated today would carry a monthly payment of $1,014.86. Fixed mortgage rates are a compelling refinancing alternative for adjustable rate borrowers facing sharp payment adjustments.

                                SURVEY RESULTS

    30-year fixed: 6.24% -- down from 6.32% last week (avg. points: 0.32)

    15-year fixed: 5.98% -- down from 6.02% last week (avg. points: 0.29)

       5/1 ARM: 6.13% -- down from 6.16% last week (avg. points: 0.25)

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.

Bankrate, Inc. (Nasdaq: RATE - News) owns and operates Bankrate.com, a leading Internet consumer banking marketplace. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college 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 575 markets in 50 states. In 2005, Bankrate.com had over 46 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO - News), America Online (NYSE: TWX - News), The Wall Street Journal (NYSE: DJ - News) and The New York Times (NYSE: NYT - News). Bankrate.com's information is also distributed through more than 400 national and state publications. In addition to Bankrate.com, Bankrate, Inc. also owns and operates FastFind, an internet lead aggregator and MMIS/Interest.com, which publishes mortgage guides and financial rates and information.

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

http://www.bankrate.com

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

_______________________________________________________________

For more information contact:

Kayleen Keneally
Director, Corporate Communications
kkeneally@bankrate.com
917-368-8677

Source: Bankrate, Inc.

Copyright © 2006 Yahoo! Inc. All rights reserved.

Copyright © 2006 PR Newswire. All rights reserved.