Six-Month Graph of 1-year Adjustable-Rate Mortgages
This is a graph of combined average interest rates for 1-year Adjustable Rate Mortgages over the last six months, derived from data gathered as part of HSH's editorial surveys. The weekly 1-year ARM data that populates this graph of average rates can be seen in HSH's Statistical Release; fresh daily updates to the average for the 1-year ARM can be found on our page of today's mortgage rates.
One-year ARMs were once the king of all ARMs, popular with homebuyers and refinancers alike. However, ARMs with high-frequency rate changes have fallen out of favor in the housing market, as periods of rising interest rates tend to make these loans expensive in just a short while; such ARMs are more popular when interest rates are relatively high and have some space to adjust downward. In recent times, consumers have expressed a preference for loans with an initial fixed rate of at least a few years over this more fully-floating variety.
For a longer review of rates, see our three-year trend graph of 1-year adjustable rate mortgages.
These combined averages give a realistic picture of local mortgage markets, particularly important in high-cost areas.