Freddie Mac, which tracks what kind of mortgage people select when they refinance, says those with adjustable-rate loans are switching into fixed- rate loans, as they often do in a stable rate environment.

In 1989, 83% of ARMs that were refinanced changed to a 30-year fixed- rate loan, according to Freddie Mac. In the second quarter, 50% of ARMs that were refinanced went to a 30-year fixed.

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