The rising popularity of fixed rate mortgages

Despite the continuous good news of falling 5-year adjustable rate mortgage rates over the past quarter, according to the Mortgage Bankers Association, almost half of all mortgage applicants in the last week were looking to refinance their home loans, with the vast majority looking to refinance their home loans as fixed-rate mortgage.  With year low Atlanta mortgage rates on offer at the moment, the gap between 5-year adjustable rate mortgage rates and 30-year / 15-year fixed rate mortgage rates has now narrowed so that not much difference can be seen between the two.  Nonetheless, “with an estimated $560 billion in adjustable rate mortgages set to adjust in the coming year, we’re seeing a growing trend of people taking advantage of these still historically low rates by refinancing into a fixed-rate mortgage” commented Bob Walter.  And who can really blame them when the alternative is the uncertain feeling of not knowing if this downward trend in interest rates is going to continue into the New Year. 

Happy Thanksgiving to all our readers!