For immediate release

Mortgage rates remain temptingly low
Bankrate.com posts weekly mortgage survey results

NEW YORK, N.Y. -- Oct. 3, 2002-- Mortgage rates went up slightly this week, and homeowners are refinancing in record numbers.

The benchmark 30-year fixed-rate mortgage rose 3 basis points to 6.06 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.48 discount and origination points.

The 15-year fixed mortgage popular for refinancing inched 1 basis point higher to 5.48 percent.

Mortgage rates remain extremely attractive, and are behind much of the strength in real estate prices and the housing market. The volume of refinancing activity is also propping up consumer spending, as homeowners reduce their monthly payments only to pour the savings into new cars or home computers.

"Weak economic data has been countered by Fannie Mae reducing its interest rate exposure and temporarily defused tensions surrounding the Iraq situation," explained Bankrate senior financial analyst Greg McBride. "However, disappointing corporate earnings could drive investors back to Treasuries in coming weeks." When investors flock to the safety of Treasuries, mortgage rates tend to fall.

One year ago, 30-year fixed mortgage rates were at 6.58 percent. At that time, a $150,000 loan would have a monthly payment of $956.01. With mortgage rates flirting with the 6 percent mark recently, the same loan would now carry a monthly payment of just $905.12, saving more than $50 per month. That kind of savings has fueled an unprecedented refinancing boom.

Most of Bankrate's panel of mortgage experts believe the low rates are likely to stick around for the next five weeks. Half of Bankrate's Rate Trend Index panel said mortgage rates would remain unchanged, while 38 percent expect them to drop. Just 12 percent predict rates will rise over the same period.

For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/mortgagerates.

SURVEY RESULTS

30-year fixed: 6.06% - up from 6.03% last week (avg. points: 0.48)
15-year fixed: 5.48% - up from 5.47% last week (avg. points: 0.46)
1-year ARM: 4.48% - unchanged from 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. For more details about the survey, and a breakdown of the mortgage rates charged in those cities, go to http://www.bankrate.com. To see this week's expert survey, 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 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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