Countrywide Securities analysts have highlighted their recent production activity and applications trends in light of the decline in interest rates and shifts in the yield curve.

Not surprisingly, since about April, there's been a steady increase in fixed rate loan production from just over 40% of total loan production to between 50% and 60% through October. Over this same period, there's been a steady decline in pay-option and short-reset ARMs from the 20% area to the 10% area. Other programs such as hybrid ARMs, subprime ARMs, subprime fixed, and government fixed have held in a narrow range. The table on this page gives the proportion of their total production in various loans in October compared to June of this year.

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