The percentage of loans paying off on their balloon dates remained near record lows in June, indicating that despite historically low interest rates, the ability for borrowers to refinance remains a challenge.

According to a report by analytics firm Trepp, only 32.3% of loans reaching their balloon date paid off, the second lowest total in 21 months.

The June rate is a slight improvement over May when 29.4% of loans paid off — the lowest since October 2010 — and is well under the 12-month average of 42.7%.

By loan count, as opposed to balance, 55.2% of loans in June paid off, Trepp found. On that basis, the 12-month rolling average rises to 51.8%. The disparity between the volume-based total and the count-based total, the firm says, indicates that mostly small-balance loans paid off in June.

Prior to 2008, the pay-off percentages were well north of 70%. Since the beginning of 2009, however, only four months saw more than half of the loan balances reaching their balloon date pay off.