Fixed Mortgage Rates Dominant Choice When Refinancing
While 30-year fixed-rate mortgages are still the most preferred product chosen for the new loan among borrowers who previously had that product or an ARM, borrowers who previously held shorter-term fixed-rate mortgages showed a stronger preference for staying with a 15-year or 20-year fixed-rate loan than they have in recent quarters. Overall, fixed-rate loans accounted for more than 95 percent of refinance loans.
Frank Nothaft, Freddie Mac vice president and chief economist" had hte following comment about fixed mortgage rates and refinancing.
Fixed mortgage rates fell throughout the third quarter in Freddie Mac's Primary Mortgage Market Survey®, with 30-year fixed rates dropping to levels we hadn't seen since the early 1950s. We ended the second quarter excited that borrowers could lock in a rate of 4.75 percent for 30 years, and we ended the third quarter with rates at just a touch over 4.25 percent. It's no wonder borrowers are attracted to fixed-rate loans.
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