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.

 

Roger Hunt

Private Mortgage Advisors (an affiliate of Wells Fargo Bank, N.A.)

Burlingame,CA 94010

650.796.0326

www.rogerhunt.com

roger.m.hunt@wellsfargo.com

 

3 Comments on Most Refinances are moving into Fixed Rate Mortgages!

JAN
22

That's a no brainer considering the low rates.  It looks like some people are waking up.

2:13pm • #1

I agree....not one of my clients choose an arm, but there are those who are looking for a short term solution that still are attracted to the low rates of the 5/1ARM especially in the jumbo money.

thanks for your comment

2:21pm • #2
FEB
07

Hi Roger,

 

You have been busy!  This is the first time I have been on Active Rain in a while, great to read your Blogs, very informative, thanks.

5:40pm • #3

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Roger Hunt

Burlingame, CA

More about me…

Private Mortgage Advisors/an affiliate Wells Fargo Bank N.A.

Address: 1440 Chapin Ave , Suite 200, Burlingame, CA, 94010

Office Phone: (650) 931-2067

Cell Phone: (650) 796-0326

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In this blog I will share information, that I feel will be useful to both the real estate agent and the consumer as it relates to real estate financing in California and the rest of the U.S. I am a direct lender with Private Mortgage Advisors (an affiliate of Wells Fargo Bank, N.A.)


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