In the third quarter, about 95 percent of US borrowers chose fixed-rate contracts when refinancing their homes, according to the US Federal Loan Mortgage Corp.
US homeowners who previously had adjustable-rate loans or 30-year loans were likely to choose 30-year fixed-rate mortgages when refinancing, while those with 15-year or 20-year mortgages were previously stuck with shorter terms, said Freddie Mac.
“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 Mr. Frank Nothaft, chief economist and vice president at Freddie Mac.