Fixed rate mortgages on the rise

As Wall Street frets about the fall-out of sub-prime mortgages, the Mortgage Bankers Association noted, in a regularly issued report, that fixed-rate mortgages "dominated mortgage originations in the first half of 2007."

The fixed-rate share showed a big jump from the second half of 2006, said the association, a trade group that represents the real estate finance industry.

For first mortgages, fixed-rate loans, including interest-only loans, accounted for 53.4 percent of loans in the first half of 2007, versus 46.2 percent in the second half of 2006, the association said.

The survey also noted that first-time home buyer purchases represented 26.9 percent of home purchases in the first half of 2007, unchanged from the second half of 2006.

The average loan amount for a first-time buyer was $202,265, compared with $233,433 for non first-time buyers, the association said.
(By Chris Reidy, Globe staff)