Fixed rate mortgages out of favour 03 February 2015 4:19PM John Kavanagh Homebuyers are betting that variable mortgage rates will stay low, or possibly go lower, and are avoiding fixed-rate loans, according to reports issued by two of the biggest mortgage brokers yesterday.Mortgage Choice reported that fixed rate loans accounted for 20.5 per cent of home loans its brokers wrote in January - down from 22.3 per cent in December and from an average of 24.8 per cent over the 12 months to January.Mortgage Choice said that the last time fixed rate loans accounted for less than 21 per cent of its business was back in February 2013.AFG reported that fixed-rate loans accounted for 15.4 per cent of mortgages it processed in January - down from an average of 17.3 per cent last year.Homebuyers have turned their backs on some highly competitive fixed-rate deals. Yesterday loans.com.au cut its three-year rate to 4.48 per cent.Last month Greater Building Society cuts its two-year rate by five bps to 4.34 per cent and its three-year rate to 4.44 per cent.