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Thirty-year and 15-year fixed mortgage rates fell two basis points each and the 5/1 ARM was unchanged, according to a NerdWallet survey of daily mortgage rates published by national lenders Friday morning.

Which mortgages are less likely to end up in default: fixed-rate or adjustable-rate loans? Believe it or not, today’s ARMs are less risky, according to an analysis by Archana Pradhan, senior professional economist for CoreLogic. In a blog post, she wrote that ARM borrowers had a higher average credit score (765) than fixed-rate borrowers (753) in the first quarter of this year.

ARM borrowers had more equity than fixed-rate borrowers, and their monthly debt payments took up a slightly smaller share of their incomes, too, Pradhan wrote. This marks a change since the Great Recession, when adjustable-rate mortgages were more likely to end up in foreclosure. “The ARMs today are very different than the pre-crash ARMs,” Pradhan wrote.


(Change from 9/7)
30-year fixed: 3.86% APR (-0.02)
15-year fixed: 3.30% APR (-0.02)
5/1 ARM: 3.83% APR (NC)

NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

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