Federal Reserve statistics indicated a three-year drop of $700 billion in outstanding mortgage debt, according to HousingWire.

At the end of 2007, Federal Reserve statistics indicated that the nation’s outstanding mortgage debt was approximately $14.52 trillion, and the end of 2010 showed a drop to $13.83. trillion.

These changes correlate with a decline in interest rates and an increase in home refinancing, primarily through fixed-rate loans.

However, analysis from Freddie Mac measured the three-year drop at $400 billion, with the first quarter’s fixed-rate loans making up more than 95 percent of all refinanced loans, said HousingWire.

The Wall Street Journal also mentioned that shortened loan terms are becoming common, with about 34 percent of borrowers paying off a 30-year loan with either a 15 or 20 year loan.

“For borrowers motivated to refinance by low interest rates, they could obtain even lower rates by shortening their term,” Freddie Mac Chief Economist, Frank Nothaft said in a statement.

Freddie Mac has also found positive outlook through their first quarterly gain in two years, although this is not necessarily an indication of ongoing profit.