Current 5/1 Hybrid Adjustable Rate Mortgage (ARMs) Rates
| Week | 30-year-Fixed | 15-year-Fixed |
|---|---|---|
| 12/05 | 6.690% | 5.960% |
| 11/27 | 6.810% | 6.100% |
| 11/21 | 6.840% | 6.020% |
| 11/14 | 6.780% | 5.990% |
| 11/07 | 6.790% | 6.000% |
| 10/31 | 6.720% | 5.990% |
| 10/24 | 6.540% | 5.710% |
| 10/17 | 6.440% | 5.630% |
| 10/10 | 6.320% | 5.410% |
| 10/03 | 6.120% | 5.250% |
| 09/26 | 6.080% | 5.160% |
| 09/19 | 6.090% | 5.150% |
- 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