It offers a new fixed-rate loan where people have to pay 10.6 per cent for five years.

Not surprisingly, 70 percent of the bank's mortgage business last year was in 15-year fixed-rate loans.

But in the early 1980's, most consumers still had fixed-rate loans taken out when interest rates were stable.

The families anticipate a rate of around 8 percent for a 30-year fixed-rate loan when they close later this summer.

I made a 10 percent deposit and took out a 30-year, fixed-rate loan for $198,000.

In January, the national average for a 30-year, fixed-rate loan was 8 percent, the survey showed.

A 15-year fixed-rate loan was 7.52 percent in January, and 7.69 last month.

The rate on the 30-year fixed-rate loan, for example, stood at 6.51 percent last week.

The interest rate on their fixed-rate loans is 8.37 percent, guaranteed until closing.

The couple - she is 32, her husband 37 - took out a $364,000 30-year fixed-rate loan at 6.625 percent.