For immediate release

Fixed mortgage rates hit lowest point since February
Bankrate.com posts weekly mortgages survey results

NEW YORK, N.Y. -- May 2, 2002 -- Mortgage rates fell for the fourth consecutive week in Bankrate.com's national survey of lenders. Rates on the benchmark 30-year fixed mortgage fell 7 basis points to 6.82 percent, with rates on the 15-year fixed and 1-year adjustable mortgage declining similar amounts. A basis point is one-one hundredth of a percent. With the drop, mortgage rates fell to their lowest point since Feb. 27. The last time rates dropped four weeks in a row, a disaster pushed them: The four-week slide began Sept. 12. This time, however, the causes were much less tragic: The sluggish pace of continued economic recovery and lack of inflationary pressures has kept the Federal Reserve from needing to boost interest rates.

"The manufacturing sector continues to expand slowly, indicative of a recovery that is unfolding at a more modest pace," says Bankrate financial analyst Greg McBride. "Fortunately, consumers continue to spend. The slow recovery prolongs the low rate environment."

The prevailing low interest rate environment continues to benefit homebuyers and homeowners alike through attractive mortgage rates. In the past four weeks, 30-year fixed mortgage rates have fallen from 7.13 percent to 6.82 percent. A drop in rates such as this can mean substantial savings for consumers. Four weeks ago, a $150,000, 30-year fixed mortgage carried a monthly payment of $1,011.08. This week, it dropped to $979.89. Over the life of the loan, the difference adds up to $11,230.96.

Mortgage rates should stay where they are for the next month, says the panel of mortgage rate experts surveyed weekly for Bankrate.com's Rate Trend Index. Over the next 30-45 days, 17 percent expect rates to go down, 17 percent say they'll rise and 66 percent predict they'll remain unchanged.

SURVEY RESULTS
30yr fixed: 6.82 -- down from 6.89 last week (avg. points: 0.49)
15yr fixed: 6.29 -- down from 6.36 last week (avg. points: 0.48)
1yr ARM: 5.27 -- down from 5.32 last week (avg. points: 0.42)

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.

About Bankrate, Inc.
Bankrate, Inc. (Nasdaq: RATE) owns and operates Bankrate.com, the Internet's leading consumer banking marketplace. Bankrate.com averages 4 million unique visitors per month, according to comScore Media Metrix, which ranks Bankrate.com first in unique visitors in the "Financial information and advice" category. Bankrate.com reviews more than 4,800 financial institutions in more than 180 markets in 50 states. 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 190 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 provides financial applications and information to a network of more than 80 partners, including Yahoo! (Nasdaq: YHOO), America Online (NYSE: AOL), 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. The Company’s stock is included in the Russell 3000 Index and the Russell 2000 index.

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