Borrowers who refinanced their home loans during the third quarter swarmed into the relative safety of fixed rate mortgages, according to Freddie Mac's quarterly refinancing study.

Amoung prime credit quality borrowrs, 94% who refinanced out of a one year adjustable rate mortgage chose a fixed rate replacement. Those refinancing a hybrid ARM chose a fixed rate loan 82% of the time, and 95% of borrowers who refinanced a fixed rate mortgage replaced it with a new fixed rate product.

The figures were similar to the second quarter data, which also showed borrowers switching to fixed rate mortgages.

Frank Nothaft, chief eonomist at Freddie Mac said that volatility in short term interest rates has contributed to the consumer preference for the FRMs, nothing that the weekly average rate on a one year ARM ranged from 5-5.5% during the third quarter.