Compared to one week ago, mortgage rates inched higher on both fixed and adjustable rate loans. The average 30-year fixed rate mortgage rose to 6.89 percent from 6.87 percent last week. According to Bankrate.com's weekly national survey of large lenders, the 30-year fixed rate mortgages had an average of 0.3 discount and origination points.

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The average 15-year fixed rate mortgage, popular for refinancing, increased by a similar amount to 6.49 percent. On larger loans, the average jumbo 30-year fixed rate is now 7.05 percent. Adjustable rate mortgages were no different. The average 5/1 adjustable rate mortgage notched higher to 6.55 percent, and the average one-year ARM crept higher to 6.13 percent.

Mortgage rates spent much of the past week treading water, but that all changed once Fed Chairman Ben Bernanke appeared before the Senate Banking Committee Wednesday morning. Almost immediately, Bernanke's words soothed investors concerned about the Fed raising interest rates too far. Yields on government securities started to fall, and mortgage rates declined right along with them. Treasury yields and mortgage rates dipped sharply between 10 a.m. and 11 a.m. Eastern time as Bernanke was speaking. Bankrate.com's weekly survey was largely complete prior to rates declining.

Fixed mortgage rates are more than one full percentage point higher than one year ago. In July 2005, the average 30-year fixed mortgage rate was 5.78 percent, meaning that the monthly payment on a loan of $165,000 was $966.04. With the average 30-year fixed rate now 6.89 percent, the same loan originated today would carry a payment of $1,085.59. Despite recent increases, fixed mortgage rates remain an attractive refinancing alternative for adjustable rate borrowers facing sharp payment adjustments.

SURVEY RESULTS

30-year fixed: 6.89% -- up from 6.87% last week (avg. points: 0.3)

15-year fixed: 6.49% -- up from 6.47% last week (avg. points: 0.33)

5/1 ARM: 6.55% -- up from 6.52% last week (avg. points: 0.3)

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. This week, the panelists are split. Half of respondents expect rates to remain unchanged in the next 30 to 45 days. Meanwhile 37 percent predict mortgage rates to rise, with just 13 percent forecasting a decline.

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, 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), 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 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.

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