Nearly six out of 10 California home buyers chose fixed-rate loans in the first half of this year--a dramatic switch from the same period in 1984 when six out of 10 opted for adjustable-rate loans, according to a survey by the California Assn. of Realtors.
Buyers chose fixed-rate loans in 58.1% of transactions where newly originated financing was obtained, compared to 36.3% of transactions where adjustable-rate mortgages were used.
Another trend revealed in the survey is the sharp decline in seller-originated financing. In 1981 and 1982, sellers originated nearly 80% of all first mortgages. This percentage has declined in the first half of 1985 to only 3.2% of all first mortgages.
Savings & loans were the main source of new first mortgages, accounting for 47.6%, down from 57.1% for the first half of 1984. Mortgage bankers are in second place, accounting for 39.5% of all new first mortgages in the first half of this year.