More than 95% of refinancing homeowners chose a fixed-rate mortgage

In the second quarter of 2012, fixed-rate loans accounted for more than 95 percent of refinance loans, based on the latest Freddie Mac Quarterly Product Transition Report.

- Of borrowers who refinanced during the second quarter, 30 percent reduced their loan term, while 67 percent of borrowers kept the same term.

- Eighty-one percent of borrowers who had a hybrid ARM chose a fixed-rate loan during the second quarter, the highest share since the second quarter of 2010, while the remaining 19 percent chose to refinance into the same type of product.

"Fixed mortgage rates for 30-year loans and for 15-year loans during the second quarter in Freddie Mac's Primary Mortgage Market Survey, averaged well below long term averages and were the lowest quarterly averages recorded in our survey. It's no wonder we continue to see strong refinance activity into fixed-rate loans," commented Frank Nothaft, Freddie Mac vice president and chief economist.