Thirty-year fixed mortgage rates, 15-year fixed home loans and 5/1 ARM rates all moved lower today, according to a NerdWallet survey of mortgage rates published by national lenders Wednesday morning.
For 5/1 ARM rates, it’s the first downward move this month.
Mortgage defaults lowest in 9 years
If there’s any good news to come from rising home prices, it’s that mortgage defaults are falling. Equifax, the consumer credit company, says the total number of first mortgage defaults in June was 17,909, the lowest since January 2007.
“The backlog of foreclosures from the financial crisis finally appears to be waning, and write-offs are returning to historically normal levels,” Amy Crews Cutts, senior vice president and chief economist at Equifax, said in a release. “Rising home values have helped significantly, as have improving labor markets. Given the low inventory of homes for sale and the overall improving credit profile of the U.S. consumer, we expect home sales to maintain the upward trend we’ve seen in the first half of the year and for mortgage default performance to continue its downward path.”
Equifax says that total balances outstanding on first mortgages are $8.33 trillion, a year-over-year increase of 2.8%.
30-year mortgage rates inch lower
The NerdWallet Mortgage Rate Index compiles annual percentage rates — lender interest rates plus fees, the most accurate way for consumers to compare rates. Here are today’s average rates for the most popular loan terms:
Mortgage Rates: Aug. 10, 2016
(Change from 8/9)
30-year fixed: 3.63% APR (-0.01)
15-year fixed: 3.00% APR (-0.03)
5/1 ARM: 3.49% APR (-0.01)
Homeowners looking to lower their mortgage rate can shop for refinance lenders here.
NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.