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WASHINGTON – Nov. 16, 2010 – Ninety-five percent of U.S. borrowers in the third quarter chose fixed-rate contracts when refinancing, the U.S. Federal Loan Mortgage Corp. said Monday.
Consumers who previously had 30-year loans or adjustable-rate loans most often chose 30-year, fixed-rate loans when refinancing, while those with 15-year or 20-year loans previously stuck with shorter terms, Freddie Mac said.
“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,” said Frank Nothaft, Freddie Mac vice president and chief economist.
Copyright United Press International 2010
