As Consumers Opt For Shorter Terms
WASHINGTON – Consumers are increasingly looking to finance homes at terms shorter than the traditional 30-year mortgage.
Freddie Mac reported of those homeowners who refinanced a 30-year fixed-rate mortgage during Q2 in 2011, 37% had opted for a 15-year or 20-year fixed-rate loan. Freddie Mac said that is the highest volume of mortgage financings with such terms since Q3 2003.
In a released statement, Freddie Mac Chief Economist Frank Nothaft forecast that strong refinance activity in fixed-rate loans is expected to continue, noting during Q2 nearly 70% of all mortgage apps were for refinancings.