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It depends on who is saying it. I know a lot of fraternity guys who say it a lot, in a humorous manner, "hey BROS lets go back to the FRAT house". In that sense, no, it isn't.
I don't ever find it offensive, but I do find it annoying when people use terms like fratboy or fratty/frat to describe a cargo short/abercrombie type person. People do this with the term "preppy" too.
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