“Nearly 100%” of the mortgage offers sent through the mail in the first quarter that disclosed a rate type advertised fixed-rate loans, according to media monitoring service Comperemedia.
That’s up from 84 percent in the first quarter of 2007, at a time when the popularity of adjustable-rate mortgages was already beginning to fade.
The latest weekly survey from the Mortgage Bankers Association noted that ARMs made up just 10.3 percent of total mortgage applications, down from 18.7 percent a year ago and over 30 percent in 2006.
Comperemedia noted that the domination of fixed-rate mortgage advertisements was helped along by a significant decrease in interest rates over the last quarter.
In fact, the average fixed-rate mortgage offer promoted in mortgage mailers has fallen nearly an entire percentage point to 6.22 percent in the first quarter from 7.14 percent in the fourth quarter.
However, the super low mortgage rates have proven to be short lived, as mortgage financier Freddie Mac noted in its latest weekly survey that interest rates climbed to their highest level in eight months, with the 30-year fixed starting to make its way back up to year-ago levels.
This, along with the general disruption in the mortgage industry, may explain why direct mail volume for mortgages fell 17 percent from the fourth quarter (from 261 million offers to 218 million) and 57 percent since the first quarter of 2007.