Industries Banking/Finance

Borrowers overwhelmingly choose fixed-rate mortgages

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In the third quarter of 2011, fixed-rate loans accounted for more than 95 percent of refinance loans, according to Freddie Mac.

The McLean-based mortgage company’s Quarterly Product Transition Report found that 95 percent of borrowers who refinanced during the third quarter did so with a fixed-rate loan.

“Fixed mortgage rates averaged 4.29 percent for 30-year loans and 3.47 percent for 15-year product during the third quarter in Freddie Mac’s Primary Mortgage Market Survey, well below long-term averages,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement. “The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 5.3 percent during the third quarter of 2011. It’s no wonder we continue to see strong refinance activity into fixed-rate loans.”

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