Homebuyers put less and less skin in the game, adding to the market’s overall risk

In the past 12 months, 1.5 million borrowers bought their homes with down payments of less than 10 percent, marking a seven-year high, according to Black Knight Financial Services.
The bulk of the growth has not been at the lowest down payment level, that is, 3 percent or less. It is more in the 5 to 9 percent down payment arena.

Today’s loans are less risky than those issued before the housing crash. They are mostly fixed-rate mortgages, as opposed to adjustable-rate mortgages.

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