Freddie Mac borrowers are increasing their interest in 15-year fixed-rate mortgages but continue to shun adjustable rate loans, according to second quarter loan figures released by the GSE. While the 30-year FRM remains the preferred product of choice — with both 30- and 15-year rates at or near their historical lows — some borrowers are finding 15-year payments more affordable while providing an opportunity to lessen their loan terms as well as their rates. In 2Q borrowers continued to show an increasing preference for FRMs: 99% of Freddie Mac borrowers that had an ARM switched to a FRM. In the first quarter the ratio was 98%.
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