Current 5/1 Hybrid Adjustable Rate Mortgage (ARMs) Rates
| Week | 30-year-Fixed | 15-year-Fixed |
|---|---|---|
| 09/12 | 6.200% | 5.270% |
| 09/05 | 6.350% | 5.470% |
| 08/29 | 6.350% | 5.510% |
| 08/22 | 6.460% | 5.620% |
| 08/15 | 6.490% | 5.660% |
| 08/08 | 6.470% | 5.630% |
| 08/01 | 6.730% | 5.990% |
| 07/25 | 6.780% | 6.070% |
| 07/18 | 6.770% | 6.050% |
| 07/11 | 6.890% | 6.170% |
| 07/03 | 6.950% | 6.250% |
| 06/27 | 6.860% | 6.160% |
- 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