Current ARM loan rates

Today's ARM mortgage rates

As of Tuesday, May 12, 2026, the national average 5/1 ARM interest rate is 5.71%, up compared to last week’s of 5.64%. The national average 5/1 ARM refinance interest rate is 6.16%, flat compared to last week’s of 6.16%.

An adjustable-rate mortgage (ARM) is a home loan with a variable interest rate. It starts with a fixed rate for a set period of time, and later shifts to an adjustable rate that fluctuates with market conditions. Similar to fixed-rate mortgages, the rates on adjustable-rate loans have increased in recent years from pandemic-era lows. However, rates on all types of mortgages have decreased in recent months due to economic uncertainty — and the introductory rates on ARMs today are still lower than rates on fixed loans. ARM rates are also more directly influenced by Federal Reserve decisions. 

Compare current ARM rates versus other loan types

When is it a good idea to get an adjustable-rate mortgage?

An ARM tends to make the most sense when your timeline is shorter than the loan’s built-in uncertainty. For example, if you are buying a starter home and plan to move in the next few years, expect your income to increase, or plan to refinance before the rate period ends, the lower introductory rate of an ARM can help keep initial payments lower.

“Less than 10% of borrowers take ARMs, meaning more than 90% opt for fixed-rate mortgages,” says Bankrate housing market analyst Jeff Ostrowski. “Americans simply prefer the certainty of fixed-rate mortgages over ARMs.”

However, that tradeoff is getting more attention right now. With fixed mortgage rates still on the higher side, ARMs can offer a noticeable break on monthly costs in the early years of homeownership. And if inflation trends and moves from the Federal Reserve ease rates over time, some borrowers may be able to refinance or see smaller adjustments than expected. 

An ARM works best when you have a plan and understand how long you’ll stay in your home, what happens when the rate changes and whether you’d refinance, sell or absorb a higher payment. 

“If you're willing to roll the dice, an ARM could make sense. In Bankrate's recent surveys, the savings on 5/6 ARMs vs. 30-year fixed-rate loans have been more than 0.3 percentage point. And it's possible rates could be lower in five years when the 5/6 ARM resets. There are no guarantees, though — so an ARM makes the most sense for borrowers willing to take some financial risk.” - Jeff Ostrowski, Writer and housing market analyst

Let’s break down the pros and cons of ARMs further:

Types of ARM loans

There are several different types of ARM loans. The most common are known as hybrid ARMs, which have an initial fixed-rate period followed by a floating rate for the remainder of the loan. You'll often see these listed as numbers with slashes; for example, a 5/6 ARM or a 7/1 ARM. The first number indicates how many years the fixed rate stays fixed, and the second number indicates how often the rate adjusts after that initial fixed period — 6 for every six months, 1 for annually (i.e., once a year). So, for a 5/1 ARM — the type that usually carries the lowest rates — the rate stays fixed for the first five years and then adjusts annually after that.

Here’s a rundown of the most popular types:

• 3/1 ARM or 3/6 ARM: The first three years have a fixed rate followed by an adjustable rate for the remainder of the loan.
• 5/1 ARM or 5/6 ARM: The first five years have a fixed rate followed by an adjustable rate for the remainder of the loan.
• 7/1 ARM or 7/6 ARM: The first seven years have a fixed rate followed by an adjustable rate for the remainder of the loan.
• 10/1 ARM or 10/6 ARM: The first 10 years have a fixed rate followed by an adjustable rate for the remainder of the loan.

ARM loan requirements

When compared to other types of mortgages, ARMs typically have stricter requirements. That’s because lenders need to consider your ability to repay the loan if your rate moves higher. Here are a few criteria lenders will consider.

• Loan amount: In 2026, the limit for a conforming ARM is $832,750 in most areas. You could take on a jumbo ARM, which exceeds the conforming loan limit, though these types of loans might be harder to secure.
• Credit: With a higher credit score, you’re more likely to get a more competitive interest rate.  
• Debt-to-income ratio: Lenders will also look at your income in relation to your existing debt, such as credit card bills or car payments. 
• Down payment: Most conventional ARM loans require as little as 5% down.

Next steps to get an ARM loan