Due to the record low mortgage rates, 95% of the borrowers across the nation opted on a fixed-rate mortgage during the third quarter, according to the US Federal Loan Mortgage Corp.

Mortgage rates have continued to drop since the spring of this year, when the European Debt Crisis forced investors to shift their funds into safer US Treasury Bonds. As mortgage rates are closely tied in with these bonds, the rates took a significant nosedive. Also due to this close relation with the US long-term treasury bonds, mortgage rates can change significantly even on a given day.

According to Frank Nothaft, VP and Cheif economist at mortgage giant, Freddie Mac, We ended the second quarter excited that borrowers could lock in a rate of 4.75 percent for 30 years, and we ended the third quarter with rates at just a touch over 4.25 percent. Its no wonder borrowers are attracted to fixed-rate loans.









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