Despite the lowest rates ever on adjustable-rate mortgages, the loans remain stubbornly unpopular - and lenders can't figure out how to write more of them.

"It's incredible," said Joe McNally, Mid-Atlantic region manager for NationsBanc Mortgage Corp., based in Dallas, Tex. "We can do adjustables in the 3% area, but fixed rates are so low that people are still leaning toward them."

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