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Is home affordability starting to improve? It just might be. See the analysis portion of our latest "Income you need to buy a home in the top 50 metro housing markets".

Is home affordability starting to improve? It just might be. See the analysis portion of our latest "Income you need to buy a home in the top 50 metro housing markets".

Current 5/1 Hybrid Adjustable Rate Mortgage (ARMs) Rates

Week 30-year-Fixed 15-year-Fixed
08/28 6.560% 5.690%
08/21 6.580% 5.690%
08/14 6.580% 5.710%
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%
    • 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