Current 5/1 Hybrid Adjustable Rate Mortgage (ARMs) Rates
| Week | 30-year-Fixed | 15-year-Fixed |
|---|---|---|
| 05/29 | 6.890% | 6.030% |
| 05/22 | 6.860% | 6.010% |
| 05/15 | 6.810% | 5.920% |
| 05/08 | 6.760% | 5.890% |
| 05/01 | 6.760% | 5.920% |
| 04/24 | 6.810% | 5.940% |
| 04/17 | 6.830% | 6.030% |
| 04/10 | 6.620% | 5.820% |
| 04/03 | 6.640% | 5.820% |
| 03/27 | 6.650% | 5.890% |
| 03/20 | 6.670% | 5.830% |
| 03/13 | 6.650% | 5.800% |
- Rate changes: Fixed rate for five years, then variable, typically changing at one-year intervals; some have six-month change intervals
- Governed by: Rate changes often tied to SOFR, 1-year Treasury, 12-MAT
- Benefits: Can have lower interest rate than 30-year fixed, qualification may be easier as many are retained by lender
- Alternative Strategy: Hybrid 5/1yr or 5/6mo ARM can protect against payment risk for a medium time frame as compared to shorter-term ARM
- Useful for: Purchasing or refinancing when or home sale or refinance is anticipated within five years
- Consider if: Buying or refinancing with a medium-term time horizon or if lower rate needed to qualify
- When shopping, ask about: A history of the index the loan is governed by, margin and rate caps, especially for the first adjustment