Among third-quarter refinance transactions, the share widened for borrowers who refinanced from an adjustable-rate mortgage to a fixed-rate mortgage. Fixed-rate refinance borrowers were less likely to shorten their terms than in the past.
Among one-year ARM borrowers who refinanced, 54 percent moved into a 15-year fixed-rate mortgage. A year ago, just 28 percent refinanced into a 15-year loan.
Fixed-rate share of one-year ARM refinances was 81 percent, widening from 76 percent in the year-earlier period.
The mortgage statistics were reported Tuesday by Freddie Mac in its Quarterly Product Transition Report. Estimates were derived from a sample of properties that Freddie has funded at least two successive loans with the latest transaction being a refinance.
On hybrid ARM refinances, 82 percent refinanced into a fixed rate loan, jumping from 60 percent a year previous.
One-year ARM borrowers converted to a hybrid ARM product around 19 percent of the time, a slimmer share than 23 percent in the third quarter of last year. None in either period refinanced into a one-year ARM.
Hybrid ARM borrowers stayed in a hybrid product 18 percent of the time, a much more narrow share than 40 percent a year prior.
ARM borrowers who refinanced through the Home Affordable Refinance Program moved to a fixed-rate loan 95 percent of the time. Only half of non-HARP ARM refinances were refinanced into a fixed rate.
More than two thirds of 30-year fixed-rate borrowers stayed in a 30-year mortgages, growing from 58 percent during the same period in 2011.
Just a fifth of 30-year borrowers opted to refinance into a 15-year loan versus a quarter who moved into a shorter-term loan in the third-quarter 2011.
Fifteen-year borrowers were most loyal, staying in the shorter-term fixed-rate loan in 89 percent of refinances. A year prior, the share was also solid at 87 percent.
A quarter of HARP refinances involved shorter loan terms, while 31 percent of non-HARP refinances had their loan terms cut.
