Current ARM loan rates

Today's ARM mortgage rates

As of Monday, August 24, 2026, the national average 5/1 ARM interest rate is 6.33%, down compared to last week’s of 6.34%. The national average 5/1 ARM refinance interest rate is 6.88%, up compared to last week’s of 6.79%.

An adjustable-rate mortgage (ARM) is a home loan with a variable interest rate. It starts with a fixed rate for a set period of time, and later shifts to an adjustable rate that fluctuates with market conditions. Similar to fixed-rate mortgages, the rates on adjustable-rate loans have increased in recent years from pandemic-era lows. However, rates on all types of mortgages have decreased in recent months due to economic uncertainty — and the introductory rates on ARMs today are still lower than rates on fixed loans. ARM rates are also more directly influenced by Federal Reserve decisions. 

Compare current ARM rates versus other loan types

When is it a good idea to get an adjustable-rate mortgage?

An ARM tends to make the most sense when your timeline is shorter than the loan’s built-in uncertainty. For example, if you are buying a starter home and plan to move in the next few years, expect your income to increase or plan to refinance before the rate period ends, the lower introductory rate of an ARM can help keep initial payments lower.

“Fewer than 10% of borrowers take ARMs, meaning more than 90% opt for fixed-rate mortgages,” says Bankrate housing market analyst Jeff Ostrowski. “Americans simply prefer the certainty of fixed-rate mortgages over ARMs.”

However, that tradeoff is getting more attention right now. With fixed mortgage rates still elevated, ARMs can offer a real break on monthly costs in the early years of homeownership. And if inflation trends and Federal Reserve moves ease rates over time, some borrowers may be able to refinance or see smaller adjustments than expected. 

An ARM works best when you have a plan and understand how long you’ll stay in your home, what happens when the rate changes and whether you’d refinance, sell or absorb a higher payment.

Let’s break down the pros and cons of ARMs further:

Types of ARM loans

There are several different types of ARM loans. The most common are known as hybrid ARMs, which have an initial fixed-rate period followed by a floating rate for the remainder of the loan. You'll often see these listed as numbers with slashes — like 5/6 or 7/1. The first number indicates how many years the rate stays fixed, and the second is how often the rate adjusts after that initial fixed period — 6 for every six months, 1 for annually (i.e., once a year). A 5/1 ARM — the type that usually carries the lowest rates — stays fixed for five years, then adjusts annually.

• 3/1 ARM or 3/6 ARM: Fixed for three years, then adjustable.
• 5/1 ARM or 5/6 ARM: Fixed for five years, then adjustable.
• 7/1 ARM or 7/6 ARM: Fixed for seven years, then adjustable.
• 10/1 ARM or 10/6 ARM: Fixed for 10 years, then adjustable.

ARM loan requirements

ARMs typically carry stricter requirements than other mortgage types, since lenders need to be confident you can handle a higher rate if it moves against you.

• Loan amount: In 2026, the limit for a conforming ARM is $832,750 in most areas. Jumbo ARMs above that limit are available but can be harder to secure.
• Credit: Conventional ARMs are typically available starting around a 620 score, but the lowest rates go to borrowers at 740 and above.  
• Debt-to-income ratio: Lenders will also look at your income in relation to your existing debt, such as credit card bills or car payments. 
• Down payment: Most conventional ARM loans require as little as 5% down.

Next steps to get an ARM loan