November 30, 2015
Fixed-rate mortgages, rather than adjustable rate loans, are apparently more in favor for those looking to purchase homes in Orange County.
For the first 10 months of the year, only 15-percent of homebuyers in Orange County opted for an adjustable-rate loan, compared to 19.8 percent in 2014, according to CoreLogic. Since 1988, one-third of Orange County homebuyers reportedly used the adjustable model.
But 10 years ago, both buyers and lenders were hurt when many buyers were not able to pay the higher rates as the mortgage matured.
Historically low interest rates, below four percent for much of this year, is seen as a major factor in homebuyers’ choosing the security of a fixed rate mortgage, rather than the interest rate uncertainty of an adjustable type.