With mortgage rates on the rise and the volume of refinancing decreasing, the prevalence of 15-year fixed-rate mortgages remained constant last quarter compared with the first quarter of 1999.
Freddie Mac reported that its quarterly refinancing study found the popularity of the 15-year term was unchanged from the first quarter for borrowers holding 30-year mortgages, while it decreased for borrowers with 15- and 20-year terms.
According to the study, 31 percent of borrowers refinancing 30-year mortgages decided to refinance into 15-year loans, while 59 percent stayed with the 30-year, both unchanged from the first quarter of 1999. Additionally, 28 percent refinanced into a 30-year product.
Of borrowers refinancing 15-year fixed-rate mortgages, 67 percent stayed with the same product, 9 percent fewer than in the first quarter.
"With current rates for the 30-year fixed-rate mortgages hovering around 8 percent, most homeowners who were going to refinance for a lower mortgage have already done so," said Vassilis Lekkas of Freddie Mac.