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Options > Settings > Paths > check "Use only for removable disks?"
 
As I understand it it's just how the program functions -- unrars to a temp folder and then copies the files. When you close the program it deletes the temp folder.
 
I've hated this 'feature' too since I like to extract from one hard drive to another. I've found a workaround but nothing that just disables it completely.

Select the files you want to extract in the WinRAR window. Right click on them. Choose "Extract to Specified Folder". Choose the folder you want them to end up in. WinRAR bypasses the temp folder and dumps everything immediately into the folder you choose.
 
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