Current 5/1 Hybrid Adjustable Rate Mortgage (ARMs) Rates
| Week | 30-year-Fixed | 15-year-Fixed |
|---|---|---|
| 08/07 | 6.630% | 5.750% |
| 07/31 | 6.720% | 5.850% |
| 07/24 | 6.740% | 5.870% |
| 07/17 | 6.750% | 5.920% |
| 07/10 | 6.720% | 5.860% |
| 07/03 | 6.670% | 5.800% |
| 06/26 | 6.770% | 5.890% |
| 06/18 | 6.810% | 5.960% |
| 06/12 | 6.840% | 5.970% |
| 06/05 | 6.850% | 5.990% |
| 05/29 | 6.890% | 6.030% |
| 05/22 | 6.860% | 6.010% |
- 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