Fixed mortgage rates declined, with the average conforming 30-year fixed mortgage rate falling to 6.58 percent. According to Bankrate.com’s weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.28 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing pulled back similarly to 6.24 percent. Jumbo mortgage rates inched back too, but not as much, with the average jumbo 30-year fixed rate declining to 7.4 percent. Adjustable rate mortgages jumped again, with the average 5/1 ARM climbing to 6.64 percent and the average one-year ARM nosing higher to 6.19 percent.

Fixed mortgage rates dropped this week but adjustable rates staged another increase. With rates on most hybrid ARMs such as the 5/1, 7/1, and 10/1 ARM being higher than the average 30-year fixed mortgage rate of 6.58 percent, they hold little appeal for borrowers. Fixed rate mortgages are the place to be, and with the Fed shifting their economic stance notably in the past week, conforming mortgage rates may be headed still lower. As for jumbo mortgage rates, even though the average jumbo rate declined this week, it didn’t decline as much as the average conforming rate. The result is a still-wider spread between borrowers on opposite sides of the $417,000 conforming threshold. The spread between the average conforming and jumbo fixed rates is now 0.82 percentage point, up from 0.28 percentage point one month ago.

Despite the turbulence in mortgage markets, fixed mortgage rates are an attractive option for most borrowers. One month ago, the average 30-year fixed mortgage rate was 6.82 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,306.52. Now that the average conforming 30-year fixed rate is 6.58 percent, the same $200,000 loan carries a monthly payment of $1,274.68.

SURVEY RESULTS

30-year fixed: 6.58% — down from 6.68% last week (avg. points: 0.28)
15-year fixed: 6.24% — down from 6.35% last week (avg. points: 0.28)
5/1 ARM: 6.64% — up from 6.53% last week (avg. points: 0.23)

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 majority of panelists — 69 percent — expect rates to fall. The remaining 31 percent predict rates will remain relatively unchanged in the next 30 to 45 days. Interestingly, none of the respondents forecast an increase in mortgage rates in the coming weeks.

For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI

About Bankrate, Inc.
Bankrate, Inc. (NASDAQ:RATE) (”Bankrate”) 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. Bankrate 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 reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2005, Bankrate.com had nearly 53 million unique visitors. Bankrate 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’s information is also distributed through more than 400 national and state publications. In addition to Bankrate.com, Bankrate also owns and operates Bankrate Select, an Internet lead aggregator and Mortgage Market Information Services, Inc. and Interest.com, Inc., each of which publishes mortgage guides and financial rates and information.